Monday, June 13th 2022

AMD Said to Become TSMC's Third Largest Customer in 2023

Based on a report in the Taiwanese media, AMD is quickly becoming a key customer for TSMC and is expected to become its third largest customer in 2023. This is partially due to new orders that AMD has placed with TSMC for its 5 nm node. AMD is said to become TSMC's single largest customer for its 5 nm node in 2023, although it's not clear from the report how large of a share of the 5 nm node AMD will have.

The additional orders are said to be related to AMD's Zen 4 based processors, as well as its upcoming RDNA3 based GPUs. AMD is expected to be reaching a production volume of some 20,000 wafers in the fourth quarter of 2022, although there's no mention of what's expected in 2023. Considering most of AMD's products for the next year or two will all be based on TSMC's 5 nm node, this shouldn't come as a huge surprise though, as AMD has a wide range of new CPU and GPU products coming.
Source: China Times
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18 Comments on AMD Said to Become TSMC's Third Largest Customer in 2023

#1
not_my_real_name
It will be something like Apple > Intel > AMD > NVIDIA (and this NV part shocks me), IMO. Do you have other guesses or information?
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#2
DoLlyBirD
not_my_real_nameIt will be something like Apple > Intel > AMD > NVIDIA (and this NV part shocks me), IMO. Do you have other guesses or information?
Apple/Nvidia/AMD/Intel
Posted on Reply
#3
Denver
not_my_real_nameIt will be something like Apple > Intel > AMD > NVIDIA (and this NV part shocks me), IMO. Do you have other guesses or information?
Apple
Qualcomm
AMD-> Consoles, GPUs, I/O dies, CPUs.
Mediatek?
Nvidia?
Intel?
Posted on Reply
#4
Wirko
What really matters here is that AMD now obviously has the money to buy and/or finance enough fab capacity, enough in advance.
Posted on Reply
#7
Daven
CallandorWoT@TheLostSwede who the hell is Hi Silicon? and why did they go from #2 in 2020 to just utterly vanishing? that seems like a bizarre occurrence...
They are the silicon design branch of Huawei. I don’t think Huawei is allowed to make chips at TSMC anymore or Huawei pulled all their orders.
Posted on Reply
#8
Denver
CallandorWoT@TheLostSwede who the hell is Hi Silicon? and why did they go from #2 in 2020 to just utterly vanishing? that seems like a bizarre occurrence...
Huawei? Sanctions stopped their advance...
Posted on Reply
#9
Anymal
If Taiwan still exists in 2023. Chinese government is hostile.
Posted on Reply
#10
ODOGG26
CallandorWoT@TheLostSwede who the hell is Hi Silicon? and why did they go from #2 in 2020 to just utterly vanishing? that seems like a bizarre occurrence...
Posted on Reply
#11
kapone32
AnymalIf Taiwan still exists in 2023. Chinese government is hostile.
Time is running short
Posted on Reply
#12
ODOGG26
DenverApple
Qualcomm
AMD-> Consoles, GPUs, I/O dies, CPUs.
Mediatek?
Nvidia?
Intel?
This is probably what it might end up looking like. AMD probably might even be able to take 2nd place.
Posted on Reply
#13
Daven
ODOGG26This is probably what it might end up looking like. AMD probably might even be able to take 2nd place.
Yeah, Intel has a pretty small share, AS IT SHOULD BE SINCE THEY HAVE THEIR OWN FABS!
/smh
Posted on Reply
#14
ODOGG26
DavenYeah, Intel has a pretty small share, AS IT SHOULD BE SINCE THEY HAVE THEIR OWN FABS!
/smh
Facts. Not sure why people believe Intel will somehow be able to push AMD out by buying up mad wafers lol. Its quite hilarious. AMD and TSMC probably already have preliminary talks about upcoming nodes and what they project they will be purchasing and likely pay a holding fee to TSMC to make sure that amount is secured. Heck they probably have such a good relationship that TSMC probably just put it on some kind of credit type of thing. Honestly AMD probably needs so much wafer that they can pay for a enormous amount for lets say 3nm ahead of time and still will need more because of how many products they have. None will go to waste. I think that makes wafer projections for them easy and hard at the same time if you know what I mean.
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#15
ARF
DavenYeah, Intel has a pretty small share, AS IT SHOULD BE SINCE THEY HAVE THEIR OWN FABS!
/smh
Intel has inferior lines - old 10nm process, 14nm lines, 22nm lines, etc.
ODOGG26Facts. Not sure why people believe Intel will somehow be able to push AMD out by buying up mad wafers lol. Its quite hilarious. AMD and TSMC probably already have preliminary talks about upcoming nodes and what they project they will be purchasing and likely pay a holding fee to TSMC to make sure that amount is secured. Heck they probably have such a good relationship that TSMC probably just put it on some kind of credit type of thing. Honestly AMD probably needs so much wafer that they can pay for a enormous amount for lets say 3nm ahead of time and still will need more because of how many products they have. None will go to waste. I think that makes wafer projections for them easy and hard at the same time if you know what I mean.
AMD's success depends on the state-of-the-art production node. I would even push them to jump to N3 as soon as possible.
Posted on Reply
#16
chrcoluk
not_my_real_nameIt will be something like Apple > Intel > AMD > NVIDIA (and this NV part shocks me), IMO. Do you have other guesses or information?
I expect AMD to be ahead of intel, remember they supply the main two consoles.
Posted on Reply
#18
watzupken
I feel whether AMD is first, second or third largest client for TSMC is not a meaningful metric. At the end of the day, when TSMC wants to increase prices, everyone will get a share of it. May be being the top few may end up paying a smaller hike.
As for Intel, no surprises here really. From what I can tell, they are using TSMC mostly for GPUs so as not to strain their already strained 10nm fabs. Unless their GPU sales pick up drastically, I don’t expect them to increase their allocation over at TSMC. GPU being one of the reasons for using TSMC. Other is passive reason is likely to prevent competition by AMD, Qualcomm, Nvidia, etc, to get more allocation and lower price. Clearly there are signs that Intel’s 10nm is not doing that well as we heard of products getting postponed/ delayed, though we are not clear if it is an issue with yield or them struggling with power draw/ thermals. Intel’s 10nm was already in trouble for years before Pat joined as CEO, so while he was able to get the node out the door, I feel a lot of compromises to the original design have to be made. So with the troubles still plaguing Intel’ s 10nm, buying expensive TSMC node will both help them to diversify their production and limit their competitors.
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