TSMC’s customers adopt new process technology increasingly quickly, according to IC Insights. It took 8 quarters for the 40-45nm node to represent 20 percent of the foundry’s quarterly sales, 5 quarters for the 28nm node and only 3 quarters for 7nm. TSMC expects the adoption of 5nm technology to be even quicker.
Enthusiastic migration to 7nm is currently saving TSMC’s year, which started off poorly. Thanks to orders from companies such as Apple and Huawei, revenue in the second half of the year is expected to be 32 percent higher than in the first six months. TSMC’s sales will most likely be essentially flat this year.