As AMD is ramping up manufacturing of its next-generation CPUs and GPUs, it’s set to develop into the second largest shopper of TSMC’s N5 (5nm-class) manufacturing node platform within the second half of 2022, in response to a DigiTimes report. However will it develop into the foundry’s second largest buyer total? In that case, it might be behind Apple, however forward of MediaTek.
AMD is about to launch a a number of new merchandise made utilizing varied nodes that belong to TSMC’s N5 household. First up, subsequent month the corporate will launch its long-awaited Ryzen 7000-series processors for desktops based mostly on its Zen 4 microarchitecture. Later this 12 months, the agency will begin ramping manufacturing of its 4th Era EPYC processors codenamed Genoa that includes the identical Zen 4 microarchitecture. Additionally, later this 12 months AMD plans to launch its Radeon RX 7000-series graphics processors that includes its RDNA 3 structure. Whereas ramp up of datacenter-oriented EPYC might be pretty sluggish, client-oriented Ryzen and Radeon ought to ramp comparatively shortly, so AMD can have a number of high-volume N5 chips in manufacturing by the tip of the 12 months.
Going into 2023, AMD is about to launch its EPYC processors codenamed Bergamo that includes Zen 4C cores for cloud native workloads in Q1 in addition to EPYC CPUs codenamed Siena for telecommunications tools afterward. Each are set to be made utilizing one in every of TSMC’s N5 course of applied sciences. As well as, AMD is projected to introduce its Zen 4-based Ryzen 7000 codenamed Phoenix processor for mainstream and high-performance laptops within the second half of subsequent 12 months.
To sum up, AMD goes to order a boatload of chips for varied functions (desktops, notebooks, high-performance servers, cloud servers, telco servers) made on a number of TSMC’s N5 course of applied sciences within the subsequent six to 9 months. In consequence, it might nicely develop into TSMC’s second largest N5 buyer if not in late 2022, however within the first half of 2023.
Readers who observe AMD intently might ask whether or not AMD turning into TSMC’s second largest buyer on N5 platform may additionally imply that the corporate is poised to develop into the foundry’s second largest buyer usually.
Based mostly on what we learn about TSMC’s largest clients, AMD was considerably behind MediaTek final December, however the hole between the businesses has shrunk since then, partially as a result of AMD buying Xilinx. MediaTek tends promote boatload of system-on-chips for client electronics, smartphones, and tablets in addition to to undertake TSMC’s newest nodes extra aggressively than the CPU and GPU firm, which is why its spending on manufacturing is excessive. However MediaTek’s SoCs have a really lengthy lifespan, so they’re low-cost to make.
In the meantime, AMD’s N5-based product household might be very broad when it comes to functions, so the volumes that the corporate will want may even be big. Since TSMC expenses extra for N5 chips than it does for N7 merchandise, AMD’s next-generation N5 chips might be costlier to make than its present units, so the corporate’s spending at TSMC may even increase. Will or not it’s sufficient to go away MediaTek behind? We have no idea for certain, however AMD clearly has possibilities to take action.
Being TSMC’s second largest buyer has its advantages because it strengthens AMD’s place when negotiating allocation, costs or speaking about course of expertise customizations. Allocation is essential for corporations like AMD usually and now that it has so many product traces that profit from modern nodes, it’s essential for AMD to strengthen its relationship with TSMC. Being the second largest buyer is definitely a great way of strengthening ties with any foundry.
