TSMC Continues To Receive ‘Smartphone’ Orders For Its N3E Chips, But No Mention Of Which Clients Are Pursuing This Manufacturing Process

TSMC will eventually shift its focus from N3 to N3E chips, with several unnamed companies showing interest in the technology. While the manufacturer is said to have received orders from firms focused on AI and high-speed computing (HPC), the company is also said to provide wafers for ‘smartphone related applications.’ Unfortunately, the latest report conveniently hid the names of those clients, though we may have an idea of who they are.

Mass production of N3E chips is reportedly happening in second half of 2023, Qualcomm and MediaTek could be the firms placing orders

With Apple having reportedly secured 90 percent of TSMC’s N3 shipments, which is the first iteration of the firm’s 3nm technology, it makes complete sense for various companies like Qualcomm and MediaTek to skip N3 and place orders for N3E wafers instead. It is said that not only is N3 expensive to mass produce, but TSMC is also struggling with yields, which is not a combination that chipset manufacturers would enjoy hearing if they want to provide their own smartphone vendors with a steady supply of shipments in late 2024.

A previous report stated that TSMC’s A17 Bionic and M3 yields stood at 55 percent, though that figure should improve in the coming months, along with a wafer output that may reach up to 100,000 units by the end of 2023. However, Apple is said to switch to the N3E process in 2024 as the production cost will reduce, and yields have improved, but one rumor claimed that making the switch would result in a performance loss but did not provide further explanation.

The report published on Economic Daily News states that mass production of N3E wafers is said to start in the second half of 2023, but who would receive the first batch has not been mentioned. Given that Qualcomm and MediaTek are slated to launch their new chipsets in the fourth quarter of next year, the initial shipments will likely go to Apple.

In case you did not know, the California-based giant is reportedly announcing the M3 for various Macs later this year, so there is a possibility that the M2’s successor is mass produced on this N3E process. Of course, nothing is set in stone right now, so remember to treat this information with a pinch of salt, and we will be back with more updates.

Written by Omar Sohail