TSMC released its Annual Report 2023, and it contained vital information about the 1.4nm "Angstrom" nodes. The A14 technology is regarded as a revolution in technology by industry analysts. Presently, TSMC is on course for the widespread adoption of their 3nm processes, suggesting that the 1.4nm nodes may debut in the market within the next five years or longer.
TSMC's 1.4nm node is aimed at high-end SoC and HPC applications, indicating a transition from traditional mobile and computing markets to the AI segment. TSMC is exploring next-generation EUV scanners for the A14 process, still in the research and development stages. TSMC has commenced exploratory studies for nodes beyond 14A, possibly referring to process shrinking to 1nm and beyond. The company plans to increase its R&D expenditures, attributed to higher research activities for 14-angstrom, 2-nanometer, and 3-nanometer process technologies. TSMC anticipates divulging more information about the Angstrom-14 at the TSMC 2024 Technology Symposium, forecasting a high single-digit CAGR over the next five years, primarily driven by AI and increased demand from the markets. Product demand, such as smartphones and PCs, is expected to recover with mild growth, supported by pent-up demand and AI-related adoptions.
TSMC's packaging efforts, CoWoS-S and CoWoS-L, are ready for mass production and expected to integrate with the upcoming HBM3E memory type for use in next-gen AI accelerators. Process upgrades may target HBM4 in the future. This development from TSMC indicates that the industry is not lagging behind in technological advancements, and the company seems ready to hold the reins in the semiconductor markets. TSMC will compete with Intel in the race towards the Angstrom era of semiconductors, with Intel already announcing several nodes in its stacks up to the 14A.
