TSMC's 5nm and 3nm supply reaches "100% utilization" showing its dominance in the market

TSMC’s 5nm and 3nm processes are among the company’s “hottest” products on the market, with the Taiwanese giant reportedly seeing 100% utilization. It’s no secret that TSMC is by far one of the most dominant companies in the semiconductor industry, simply because competitors like Intel Foundry and Samsung have slacked off on product supply, allowing the Taiwanese giant to take full advantage of the surging demand.

According to Ctee, TSMC expects to reach 100% utilization of its 5nm production line by next year, citing a surge in demand from the artificial intelligence industry. This progress fully demonstrates TSMC's dominance in the modern market, leaving no room for competitors.

TSMC's 5nm demand is mainly driven by Nvidia's Blackwell B200 series AI GPUs, which is why all of the Taiwanese giant's production lines are fully booked. Nvidia is reportedly planning to ship up to 200,000 B200 AI GPUs by the end of this year, and facing such a large number, TSMC did give priority to NVIDIA in the process. Once the Arizona plant is operational, TSMC expects to scale up 5nm production, which is expected to be by the end of 2024.

In addition to 5nm, TSMC's nodes below 3nm are also in great demand, mainly due to the large-scale adoption by companies such as Apple and MediaTek. TSMC is said to have previously prioritized its 5nm production line over 3nm supply, which shows that not only 5nm itself, but also 3nm plays an important role in increasing the revenue of the Taiwanese semiconductor giant. NVIDIA also uses the 3nm process in its high-end Blackwell AI server, which shows that once the 3nm process begins to be more widely used in the market, it will surely seize the market's limelight.

All signs clearly indicate that TSMC is on its way to monopolizing the semiconductor market, while competitors such as Samsung are struggling with yield issues, and the present and the future seem to belong to the Taiwanese giant.