TSMC to Start 10nm in 2017, Closing Gap with Intel

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest chip foundry, said that it expects to start 10 nanometer production in 2017, closing the gap with Intel.

“The performance of our 10nm, in terms of speed, power and density will be equal to what we believe Intel will define as its 10nm technology,” TSMC Director of Corporate Communications Elizabeth Sun said. “Technology-wise, we think we can close the gap at 10nm.”

For the first time this year, TSMC is expected to have the largest capex in the semiconductor industry as it aims to maintain its lead in the foundry business against rivals such as Samsung, Intel and Global Foundries.

TSMC has raised its capital expenditure budget for 2015 to US$11.5-12.0 billion, an increase of 11.5-20.0 percent compared with 2014, mainly due to its confidence in demand for advanced geometries. Intel spent $10.1 billion on capex during 2014. For the current year, Intel expects that figure to hold steady, at $10 billion, plus or minus $500 million.

Few companies can afford the huge investments in advanced production as it getting harder to build ever smaller transistor. Eventually the smaller player will be phase out from the competition and left with bigger players like Intel, TSMC and Samsung.