Intel will entrust TSMC with the production of built-in graphics for Meteor Lake processors, in which GPU will be presented with a separate crystal. The start of production was originally scheduled for the second half of 2022, then Intel moved to the first half of 2023 due to product problems and process verification, and recently the start of mass production for an unknown reason was and was completely postponed to the end of 2023, TrendForce reports.
Thus, for the entire year 2023, the previously booked production capacity is released, while the only customer for the 3nm process from the second half of 2022 to the end of 2023 remains Apple, which has placed orders for M-series and A17 Bionic processors. As a result, the TSMC will slow down the expansion process in order to avoid excessive downscaling of advanced capacity. TrendForce's version of the incident will have an impact on the company's planning of capital costs for 2023, which may be less than the current year.
It is worth noting that other TSMC clients, including AMD, MediaTek and Qualcomm, plan to enter a 3 nm product only in 2024, which is also expected to complete this technology and another iPhone. This means that in two years' time the Taiwan contractor is expected to have significant revenue increases. 2023 for TSMC will also not be successful compared to 2022, but growth will not be as significant. Finally, another positive factor for a Taiwan company may be the actual state of Intel 4 technology — if an American manufacturer does not fit into its own schedule, it will again have to outsource production, thereby giving TSMC an additional financial boost.