Ming-Chi Kuo today released an analysis of the newsletter, briefly analyzed the motivation behind TSMC’s investment in ARM and IMS, that the two investments are to improve vertical integration capabilities to ensure a smooth transition from the current 3nm FinFET technology to 2nm GAA technology.
The content of Ming-Chi Kuo’s original article is below:
I think TSMC's two investments are primarily aimed at improving vertical integration capabilities to ensure a smooth transition from the current 3nm FinFET technology to the 2nm GAA technology.
The fact that Intel will be producing ARM's own chips on the 18A process (which is roughly equivalent to TSMC's 2nm process) may be one of the reasons why TSMC needs to invest more aggressively in ARM. By investing in ARM and working more closely together (e.g., DTCO and STCO), TSMC can help optimize ARM IP for TSMC's advanced process and packaging technologies.
Apple and Nvidia are likely to use 2nm technology to produce iPhone processors and B100 next-generation AI chips at the earliest in 2026, and since these two potential 2nm customers are also investing in ARM, TSMC's investment in ARM will help to strengthen its cooperation with Apple and Nvidia and secure 2nm orders.
TSMC's investment in ARM will help strengthen its partnership with Apple and Nvidia and secure 2nm orders, while its investment in IMS will ensure that the technology development and supply of key devices can meet the demands of 2nm commercialization.In a press release today, Intel Corporation agreed to sell approximately 10% of its IMS Nanofabrication business to chip foundry TSMC.
In addition, TSMC held an interim board meeting on September 12, during which it determined that it would subscribe for up to $100 million in common stock of Arm, a subsidiary of Japan’s Softbank Group. As for the subscription price, TSMC said it will depend on the final price of Arm’s initial public offering, which is expected to be listed on the Nasdaq this week.
