Taiwan's TSMC acquires AMD's entire 7nm chip product portfolio

The future trajectory for TSMC looks very good with 7nm manufacturing secured and plenty of room to invest in more advanced products

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(By Central News Agency)

TAIPEI (Taiwan News) – TSMC continues to make substantial gains in the chip manufacturing industry, with the company reportedly leading Samsung as well as Intel in 7 nanometer (nm) wafer production.

On Aug. 27 (U.S. time), the CEO of semiconductor company AMD, Mark Papermaster, announced that it was partnering with TSMC and handing over AMD’s entire 7 nm product portfolio to the company.

Papermaster was quoted by Techspot as saying "Our work with TSMC on their 7nm node has gone very well and we have seen excellent results from early silicon."

The decision of AMD means that the previous partner which produced 7nm products, GlobalFoundries, will no longer work with the company on that range and will instead pursue more advanced 14nm and 12nm GPUs and CPUs.

This effectively means without GlobalFoundries in the market, that leaves TSMC and Samsung as the two dominant manufacturers of 7nm GPUs and CPUs.

After establishing the partnership with AMD and stabilizing 7nm production, TSMC is now expected to invest a larger share of resources in to R&D for the more advanced 12nm and 14nm, which is expected to create even more profitability for the company over the long term.

According to IC Insights, TSMC was the third largest seller of semiconductor chips in the world in the first quarter of 2018, and their current market profile looks very secure moving forward.