3nm Boom: TSMC’s Expansion Spells Opportunity for Equipment Suppliers

TSMC’s advanced processes continue to experience robust market demand, with major technology companies such as Apple, Qualcomm, Nvidia, and AMD securing its 3nm capacity, with orders extending into 2025. This momentum is expected to persist, benefiting the entire supply chain.

According to TrendForce, TSMC’s advanced process order quotations are anticipated to see double-digit growth by 2025. As the 3nm process approaches full capacity, the demand for equipment and consumables is rising, presenting new opportunities for the supply chain next year. Companies such as Gudeng Precision, China Grinding Wheel, Applied Materials Technology, E-Town Technology, and Canaan Technology are expanding production or raising revenue forecasts.

Gudeng Precision, which holds approximately 70% of the global EUV POD market share, has benefited significantly from TSMC’s adoption of EUV technology starting from the 7nm process node. This trend has continued with increased use of EUV in subsequent generations. Applied Materials Technology, which entered TSMC’s 7nm supply chain last year, is now a supplier for the 3nm process, leading to a steady increase in its semiconductor target revenue—from 4% in 2023 to 10% this year, with an expected 20% by 2026.

With TSMC‘s sustained and expanded procurement, the related advanced process supply chain is projected to flourish next year.