TSMC Q4 2023 Conference

do you have the latest conference call from TSM

The latest conference call from TSMC (Taiwan Semiconductor Manufacturing Company) was held on January 18, 2024. Key points discussed in the conference include:

1. Operations Summary (Q4 2023 and Full Year 2023):

   • Q4 revenue increased by 14.4% sequentially in NT dollars (13.6% in U.S. dollars).
   • Gross margin decreased to 53% due to margin dilution from 3-nanometer ramp.
   • Operating margin slightly ahead of guidance at 41.6%.
   • Full-year revenue for 2023 decreased by 8.7% in U.S. dollars.

2. Technology and Revenue Breakdown:

   • 3-nanometer technology contributed 15% of Q4 wafer revenue; 5-nanometer and 7-nanometer accounted for 35% and 17%, respectively.
   • Advanced Technologies (7-nanometer and below) accounted for 67% of Q4 wafer revenue.
   • Revenue from platforms: HPC increased 17%, Smartphone increased 27%, Automotive increased 13%.

3. Financials:

   • Cash and marketable securities at NT1.7 trillion (US55 billion).
   • Capital expenditures totaled NT$5.24 billion in Q4.

4. 2024 Outlook:

   • Expects business recovery in 2024, supported by 3-nanometer technology ramp and strong AI-related demand.
   • Forecasting the overall semiconductor market (excluding memory) to increase by more than 10% year-over-year.
   • TSMC's full-year revenue expected to increase by low-to-mid 20% in U.S. dollar terms.

5. N3 and N3E Technology Progress:

   • N3 technology successfully entered volume production in the second half of 2023.
   • N3E has entered volume production in Q4 2023.
   • N3 technology revenue expected to more than triple in 2024.

6. Global Manufacturing Footprint:

   • Expansion in Japan, Arizona, Europe, and Taiwan to support customer needs and future growth.
   • Plans to build specialty technology fabs in Germany and Japan, focusing on automotive and industrial applications.

7. Chairman Mark Liu's Retirement:

   • Announced retirement after the 2024 Annual Shareholders Meeting in June.
   • Dr. C. C. Wei recommended to succeed as the company's next Chairman.

8. AI-related Demand and N2 Status:

   • Surge in AI-related demand in 2023, positioning TSMC as a key enabler for AI applications.
   • N2 technology on track for volume production in 2025.

9. Mature Node Strategy:

   • Focused on developing specialty technology solutions for mature nodes to meet customer requirements.

10. Advanced Packaging and Silicon Photonics:

• Strong demand for advanced packaging solutions, with significant growth expected in the coming years.
• Silicon photonics technology development progressing well, with increased customer engagement.

The conference provided comprehensive insights into TSMC's financial performance, technological advancements, and strategic outlook for the upcoming year.

For more details, you can access the full transcript of the conference call here.

can you tell me more about 3nm, 5nm, 7nm etc in the area of semis ?

Certainly! In the semiconductor industry, terms like 3nm, 5nm, 7nm, etc., refer to process nodes, specifically the size of transistors and other components within integrated circuits (ICs). These measurements are indicative of technological advancement in semiconductor fabrication. Here's an overview of what these terms mean and their significance:

Understanding Nanometer Process Nodes

1. What Does the 'nm' Stand For?

   • 'nm' stands for nanometer, a unit of length in the metric system, equal to one billionth of a meter.
   • In the context of semiconductors, it traditionally referred to the half-pitch of a transistor's gate, the smallest feature in the transistor. However, this definition has evolved.

2. Technological Significance

   • Smaller process nodes (like 3nm, 5nm, etc.) generally indicate more advanced technology.
   • As the process node shrinks, more transistors can fit on a chip, potentially increasing its performance and energy efficiency.

3. Generations of Process Nodes

   • 7nm and Older (10nm, 14nm, etc.): Earlier generations that laid the groundwork for modern high-performance chips. Used in many products but gradually being superseded by smaller nodes.
   • 5nm: A cutting-edge node used in high-end processors for smartphones, computers, and servers. Offers improvements in power efficiency and performance over 7nm.
   • 3nm: Represents the next leap in semiconductor technology, promising even greater density of transistors, improved performance, and energy efficiency compared to 5nm.

4. Challenges and Innovations

   • Shrinking process nodes pose significant engineering challenges, including controlling power leakage and manufacturing complexity.
   • Innovations like FinFET (Fin Field-Effect Transistor) and newer structures like Gate-All-Around (GAA) transistors have been developed to address these challenges.

5. Applications

   • Smaller nodes are typically found in high-performance and energy-efficient applications like advanced smartphones, AI computing, high-performance computing (HPC), and more.

6. Marketing vs. Actual Technological Advances

   • The nanometer terminology is often more of a marketing tool than a direct representation of actual feature sizes. The 'nm' designation doesn't directly correspond to any specific physical dimension within the transistor.

7. Future Beyond Nanometers

   • As we approach the physical limits of how small transistors can be made, the focus is increasingly on alternative ways to improve chip performance, like new materials, 3D stacking of chips, and improvements in architecture and design.

In summary, 3nm, 5nm, 7nm, and similar terms are key indicators of the technological progression in semiconductor manufacturing, denoting smaller, more efficient, and powerful transistors on integrated circuits. As the industry evolves, the focus is gradually shifting from merely shrinking transistors to more holistic approaches in chip design and architecture.

The manufacturing of the H100, does it need a 3nm ?

The H100, referring to NVIDIA's H100 Tensor Core GPU, is a high-performance computing product designed for AI and large-scale computing tasks. As of my last update in April 2023, NVIDIA had not publicly specified the exact process node used for the H100's manufacturing.

However, it's important to note a few things about process nodes and high-performance GPUs like the H100:

1. Advanced Process Nodes: High-performance GPUs typically benefit from advanced semiconductor process nodes. These smaller nodes, such as 5nm or 3nm, offer improvements in power efficiency, performance, and transistor density, which are crucial for the demanding workloads handled by GPUs.

2. TSMC and NVIDIA Partnership: NVIDIA has historically partnered with TSMC (Taiwan Semiconductor Manufacturing Company) for the fabrication of its chips. TSMC's advanced process nodes, like 5nm and potentially 3nm, are among the most advanced in the industry and suitable for high-end GPUs.

3. Technological Requirements: The manufacturing of a cutting-edge GPU like the H100 would likely benefit from an advanced process node to achieve the desired performance and efficiency levels. Whether it specifically requires a 3nm process or could leverage a slightly larger node (like 5nm) depends on the design goals and performance targets set by NVIDIA.

4. Industry Trends: The semiconductor industry is continuously evolving, with major players like NVIDIA and TSMC often pushing the boundaries of what's possible in chip manufacturing. As technology advances, the adoption of smaller process nodes like 3nm becomes more prevalent for flagship products.

In conclusion, while it's not explicitly stated that the H100 requires a 3nm process, it's likely manufactured using one of the most advanced nodes available, which could be around that scale. The specific process node used would align with NVIDIA's performance objectives and the technological capabilities of its manufacturing partners at the time of the H100's development. For the most current and specific information, it would be best to refer to NVIDIA's official announcements or technical documentation.

Does Intel also manufacture using 5nm or are there any other semiconductor manufacturers that do that ?

As of my last update in April 2023, Intel had not yet started manufacturing chips using a 5nm process node. However, it's important to understand the context and nuances:

1. Intel's Process Node Naming: Intel's process node naming convention differs from that of other semiconductor manufacturers like TSMC or Samsung. For example, Intel's 10nm process is roughly equivalent to TSMC's 7nm in terms of transistor density and performance characteristics. Intel has been focusing on advancing its own process technology, which includes nodes named "Intel 7", "Intel 4", "Intel 3", and so on.

2. Intel 7 and Intel 4: Intel 7 is an evolution of their 10nm process, while Intel 4 (previously referred to as 7nm) is Intel's next major node, expected to be comparable to the 5nm nodes of other manufacturers. Intel 4 is projected to bring significant performance and efficiency improvements.

3. Other Manufacturers: TSMC and Samsung are the key players in manufacturing at the 5nm process node. Both companies have been producing chips at this node for various customers, including major technology firms that design their own silicon, such as Apple, AMD, and Qualcomm.

4. Intel's Foundry Services: Intel has also announced plans to expand its foundry services, aiming to manufacture chips for other companies. This includes investing in new technologies and process nodes to stay competitive in the global semiconductor manufacturing market.

5. Global Semiconductor Landscape: The semiconductor manufacturing landscape is dynamic, with different companies at various stages of process node development and deployment. Intel's strategy includes not only advancing its own process nodes but also potentially leveraging external foundries for certain products.

In summary, as of early 2023, Intel's manufacturing capabilities were transitioning to smaller and more advanced nodes, with Intel 4 being a key step that could be seen as equivalent to the 5nm nodes of other manufacturers. For the latest and most specific details on Intel's process technology, it would be advisable to consult recent announcements or reports from the company.

can you look at Intel's latest transcripts to see if they mention 5nm, 7nm or 3nm ?

I couldn't find any recent transcripts specifically mentioning Intel's use of 5nm, 7nm, or 3nm process nodes. However, it's important to note that Intel often uses its own naming conventions for process nodes, which differ from the industry standard used by companies like TSMC and Samsung. For instance, Intel's 10nm process is roughly comparable in density and performance to the 7nm processes of other manufacturers.

For the most accurate and up-to-date information about Intel's process nodes and their naming conventions, I recommend checking the latest official releases or financial reports directly from Intel. This information can provide insights into their current and future technology developments, including any advancements toward smaller process nodes like 5nm or 3nm.