TSMC's N3 Process Sparks High Demand, Boosting Supply Chain Growth Through 2025

TSMC’s advanced N3 process is experiencing robust demand, with leading tech giants such as Apple, Qualcomm, NVIDIA, and AMD nearly fully booking TSMC’s 3nm capacity, according to a report from the Commercial Times. The order visibility for this process extends into 2025, underscoring its popularity and the confidence of major tech companies in TSMC's capabilities.

The same report indicates that TSMC’s 3nm supply chain is poised for continued growth, benefiting firms like Gudeng Precision Industrial (Gudeng), KINIK Company (KINIK), Solar Applied Materials Technology Corp. (Solar Applied Materials), YEEDEX, and GreenFiltec.

Industry insiders cited by the Commercial Times suggest that TSMC’s wafer prices for advanced processes are expected to see double-digit percentage increases by 2025. TSMC Chairman C.C. Wei noted that the company's wafer pricing strategy is deliberate, recognizing that product values vary. He added that pricing negotiations with customers are progressing well, and TSMC remains confident in balancing price and capacity.

Wccftech also reported that Apple’s upcoming A18 Pro SoC and NVIDIA’s next-generation “Rubin” architecture will both utilize the 3nm process. The widespread adoption of TSMC’s 3nm process has drawn significant market attention, with expectations for operational boosts in the coming year.

According to sources cited by Commercial Times, Gudeng holds about 70% of the market share for EUV POD. As EUV lithography becomes a standard in advanced processes, TSMC has been increasing its use of EUV technology from the 7nm process node onward. The growing number of EUV layers per wafer bodes well for Gudeng, which stands to benefit from this trend.

In the semiconductor sputtering target materials sector, TSMC has historically relied on international suppliers. However, with a push towards domestic equipment and consumables, Solar Applied Materials joined TSMC’s advanced 7nm process supply chain last year and is now a supplier for the 3nm process. Solar Applied Materials’ revenue from semiconductor targets was 4% last year, expected to reach 10% this year, with a target of 20% by 2026, the report states.

YEEDEX specializes in components for front-end processes, such as precision vacuum chucks for EUV equipment. As the industry moves to 3nm processes, wafer thinness increases, making precision vacuum chucks crucial for improving yield rates.

GreenFiltec focuses on extractable chemical filters and AMC Micro Pollution Control services. Through innovative material R&D for filters, GreenFiltec prevents invisible gas molecules from settling in the air, which are key consumables for cost control and yield improvement. In the domestic advanced process market, GreenFiltec has captured over 50% of the market share, and its operations are expected to benefit similarly next year, according to the report.

KINIK produces reclaimed wafers and diamond discs. Its high-spec diamond disc products have been continuously adopted and expanded by major clients, achieving over 70% market share in the 3nm segment. The sources cited by the Commercial Times anticipate that as major clients’ 3nm production capacity reaches full utilization, KINIK’s performance will significantly improve starting next year.