For the first time in years, TSMC might have to deal with the underutilization of its advanced process nodes. Three of its major clients namely Apple, NVIDIA, and AMD have decided to cut their supply of chips by 10%. Apple’s iPhone 14 shipments have decreased by 10% while AMD and NVIDIA are seeing sluggish demand in the PC market, an aftermath of the pandemic and the cryptocurrency crash. With Samsung recently unveiling its 3nm process node featuring GAA technology, the Taiwanese chipmaker’s stocks are seeing their steepest dip in years.
AMD has reportedly reduced the supply of 7nm/6nm wafers which may be the result of the impending transition to newer 5nm Zen 4 CPUs and RDNA 3 GPUs. Either way, this is the least of TSMC’s worries. Apple has reduced its 5nm orders by at least 10% while NVIDIA has similar sentiments. The cryptocurrency crash paired with the slowing demand has forced Team Green to retire certain SKUs, delay the launch of its next-gen RTX 40 series GPUs and at the same time, cut initial shipment volume.
Luckily, AMD hasn’t adjusted its 5nm orders and will receive the originally promised volume while the 7nm/6nm wafers will see a drop of 20,000 pieces. Due to its dual-foundry approach, TSMC is unwilling to offer any cessations to NVIDIA. As such, the launch of its next-gen RTX 40 series graphics cards, beginning with the RTX 4080/4090 may get pushed to the first quarter of 2023 in extreme scenarios.