Home › CASE STUDIES › NEWS › TSMC's 5nm monolithic wafer cost exposure, nearly doubled compared to 7nm
TSMC's 5nm monolithic wafer cost exposure, nearly doubled compared to 7nm
At present, Apple’s A14 processor is the only processor on the market that has been published on the 5nm process. It is built by TSMC’s 5nm process, with a staggering 11.8 billion transistors inserted into the chip, providing powerful operations. Efficiency and excellent power consumption state. However, it is not cheap to produce a 5nm process processor. In addition to the design cost of the IC design company itself, there is also the foundry production cost of TSMC.
According to US CSET calculations, the cost of 12-inch wafers manufactured by TSMC’s 5-nanometer process is about US$16,988, which is much higher than the previous 7-nanometer process cost of US$9,346 per 12-inch wafer. However, because the yield rate of the 5nm process will be further improved in the future, and the output will continue to expand, the foundry price of a single chip is actually only 238 US dollars, compared to the 233 US dollars for a single chip of the 7nm process. Actually only 5 dollars more expensive.
As for the high cost of single wafers of TSMC’s 5nm process, in addition to being a new product, another important reason is the need for special processing. The production of 5nm process wafers relies heavily on extreme ultraviolet (EUV) exposure technology. , Each EUV is priced at 120 million euros, and each 12-inch wafer with a 5nm process requires more than 14 layers of EUV masks, making the use of expensive equipment to increase production costs.
Supply chain sources said that in the early stage, due to TSMC's 5nm process yield, there is still room for improvement, which makes it relatively impossible to effectively reduce costs. With the gradual increase in 5nm production capacity, this situation will improve next. However, the decline in TSMC's foundry prices has in principle nothing to do with the rise or fall of the prices of terminal manufacturers' products. Take Apple as an example. Even if the foundry cost of the A14 processor will drop in the future, this will not cause Apple to reduce the price of related equipment equipped with the processor in the early stage, so it is expected that the decline in the foundry price will drive the terminal Consumers who have adjusted product prices are disappointed.
According to previous media reports, TSMC’s 5nm manufacturing process has strong orders momentum, which makes TSMC currently accelerating its pace of expansion. Among them, not only will the new capacity of the third phase of the Nanke 18 plant be in place in the fourth quarter of 2020, but the second quarter of 2021 will also give priority to the expansion of the production capacity of the fourth phase of the Nanke 18 plant. By then, the total monthly production capacity of 5nm will be increased 60,000 pieces, officially exceeding the 100,000 piece mark, an increase of more than 70%. Therefore, in view of the current capacity of TSMC to produce Apple's A14 processor, it is expected that after the new iPhone is launched, it may still be insufficient for a long time, so the possibility of further price reduction will be very small.
According to US CSET calculations, the cost of 12-inch wafers manufactured by TSMC’s 5-nanometer process is about US$16,988, which is much higher than the previous 7-nanometer process cost of US$9,346 per 12-inch wafer. However, because the yield rate of the 5nm process will be further improved in the future, and the output will continue to expand, the foundry price of a single chip is actually only 238 US dollars, compared to the 233 US dollars for a single chip of the 7nm process. Actually only 5 dollars more expensive.
As for the high cost of single wafers of TSMC’s 5nm process, in addition to being a new product, another important reason is the need for special processing. The production of 5nm process wafers relies heavily on extreme ultraviolet (EUV) exposure technology. , Each EUV is priced at 120 million euros, and each 12-inch wafer with a 5nm process requires more than 14 layers of EUV masks, making the use of expensive equipment to increase production costs.
Supply chain sources said that in the early stage, due to TSMC's 5nm process yield, there is still room for improvement, which makes it relatively impossible to effectively reduce costs. With the gradual increase in 5nm production capacity, this situation will improve next. However, the decline in TSMC's foundry prices has in principle nothing to do with the rise or fall of the prices of terminal manufacturers' products. Take Apple as an example. Even if the foundry cost of the A14 processor will drop in the future, this will not cause Apple to reduce the price of related equipment equipped with the processor in the early stage, so it is expected that the decline in the foundry price will drive the terminal Consumers who have adjusted product prices are disappointed.
According to previous media reports, TSMC’s 5nm manufacturing process has strong orders momentum, which makes TSMC currently accelerating its pace of expansion. Among them, not only will the new capacity of the third phase of the Nanke 18 plant be in place in the fourth quarter of 2020, but the second quarter of 2021 will also give priority to the expansion of the production capacity of the fourth phase of the Nanke 18 plant. By then, the total monthly production capacity of 5nm will be increased 60,000 pieces, officially exceeding the 100,000 piece mark, an increase of more than 70%. Therefore, in view of the current capacity of TSMC to produce Apple's A14 processor, it is expected that after the new iPhone is launched, it may still be insufficient for a long time, so the possibility of further price reduction will be very small.
CONTACT US
USA
Vilsion Technology Inc.
36S 18th AVE Suite A,Brington,Colorado 80601,
United States
E-mail:sales@vilsion.com
Europe
Memeler Strasse 30 Haan,D 42781Germany
E-mail:sales@vilsion.com
Middle Eastern
Zarchin 10St.Raanana,43662 Israel
Zarchin 10St.Raanana,43662 Israel
E-mail:peter@vilsion.com
African
65 Oude Kaap, Estates Cnr, Elm & Poplar Streets
Dowerglen,1609 South Africa
E-mail:amy@vilsion.com
Asian
583 Orchard Road, #19-01 Forum,Singapore,
238884 Singapore
238884 Singapore
E-mail:steven@vilsion.com