TSMC Revenue By Process Node: 3nm, 5nm, 7nm, 10nm and More

Microchips. Pexels Image.

This article presents an analysis of the revenue generated by Taiwan Semiconductor Manufacturing Company Limited (TSMC) based on its various process nodes.

TSMC’s revenue by process node is derived from the sale of semiconductor wafers, categorized according to different generations of semiconductor manufacturing technologies.

Each process node represents a specific level of technological advancement and miniaturization in semiconductor fabrication. TSMC’s major process nodes include: 3nm technology, 5nm technology, 7nm technology, and older nodes.

The definitions of TSMC’s process nodes are available here: process nodes.

Let’s take a look!

You may find related statistic of TSMC on these pages:

Revenue

• TSMC revenue by country: U.S., China, Taiwan, Japan, etc.,
• TSMC revenue by product: sales of wafer and others,
• TSMC revenue By Segment – HPC, Smartphone, IoT, Automotive, etc.,

R&D Comparison

• TSMC vs Intel,
• TSMC vs Samsung,

Profit Margin Comparison

• TSMC vs Intel,
• TSMC vs Samsung,

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Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

New Taiwan Dollar (TWD): The New Taiwan Dollar (TWD), abbreviated as NT$, is the official currency of Taiwan.

It is used in all forms of transactions within the country, from daily expenses to business dealings. The New Taiwan Dollar is issued by the Central Bank of the Republic of China (Taiwan) and is subdivided into 100 cents.

Its symbol is NT$, and it is known for its stability and wide acceptance in the region. The exchange rate of TWD to USD is NT$1,000 to US$30.30.

Wafer Revenue: TSMC’s wafer revenue refers to the income generated by Taiwan Semiconductor Manufacturing Company (TSMC) from the production and sale of semiconductor wafers.

These wafers are the foundational materials used to fabricate integrated circuits (ICs) and computer chips. TSMC manufactures these wafers using advanced semiconductor processes and sells them to various electronics manufacturers and fabless companies, which design the chips but outsource the manufacturing process.

TSMC’s wafer revenue is a significant component of the company’s overall revenue, driven by the demand for high-performance computing (HPC) products, smartphones, automotive applications, Internet of Things (IoT) devices, and other digital consumer electronics.

The company’s ability to offer cutting-edge process technologies, such as 5nm, 4nm, and 3nm nodes, ensures that its wafers meet the evolving needs of its customers, contributing to sustained revenue growth.

Process Nodes: Taiwan Semiconductor Manufacturing Company (TSMC)’s process nodes refer to the different generations of semiconductor manufacturing technologies developed by the company.

These nodes are typically named with a number followed by the abbreviation for nanometer (nm), such as 7nm, 5nm, and 3nm. Each process node represents a new level of miniaturization and technological advancement in semiconductor fabrication.

Key Process Nodes

• 7nm Technology: Introduced in 2018, TSMC’s 7nm FinFET (N7) technology marked a significant advancement in semiconductor manufacturing. It offered improved performance, power efficiency, and logic density compared to previous nodes.
• 5nm Technology: Launched in 2020, TSMC’s 5nm FinFET (N5) technology further enhanced performance and power efficiency. It enabled higher transistor density, allowing for more powerful and energy-efficient chips.
• 3nm Technology: In 2022, TSMC began high-volume production of its 3nm FinFET (N3) technology. This node introduced the FinFlex technology, which allows chip designers to optimize performance, power consumption, and area (PPA) by mixing and matching different standard cells within a chip.
• 2nm Technology: Currently under development, TSMC’s 2nm (N2) technology will feature the company’s first generation of nanosheet transistor technology. This node aims to deliver significant improvements in performance and power efficiency.

Evolution of Process Nodes

Process nodes have evolved over time, with each new generation offering smaller transistor sizes, higher performance, and better power efficiency.

Initially, process nodes were named based on their gate lengths and half-pitch, but this is no longer the case. Today, the numbers used to signify each new node are chosen by companies and do not necessarily correspond to specific physical dimensions.

Importance of Process Nodes

Advancements in process nodes are crucial for the semiconductor industry as they enable the development of more powerful and energy-efficient chips.

These improvements drive innovation in various fields, including consumer electronics, automotive, artificial intelligence, and data centers.

Nanometer: A nanometer (nm) is a unit of measurement in the metric system, equal to one billionth of a meter. To put it in perspective, a nanometer is about 80,000 times smaller than the diameter of a human hair.

This incredibly small scale is commonly used in science and engineering, particularly in fields like nanotechnology, semiconductor manufacturing, and materials science.

Applications of Nanometers

• Semiconductor Manufacturing: In the semiconductor industry, process nodes are often defined in nanometers (e.g., 7nm, 5nm). These nodes indicate the size of transistors and other critical features on a chip, with smaller nodes allowing for more powerful and efficient electronic devices.

Scale Comparison

• 1 meter (m) = 1,000,000,000 nanometers (nm)
• 1 millimeter (mm) = 1,000,000 nanometers (nm)
• 1 micrometer (µm) = 1,000 nanometers (nm)

The nanometer scale is essential for many cutting-edge technologies and scientific research, enabling precise manipulation and measurement at the atomic and molecular levels.

Revenue Mix By Process Node: Percentage of revenue by process node is calculated based on the ratio of the revenue from a certain process node to wafer revenue.

TSMC’s wafer revenue is generated through the sales of silicon wafer. You may find more information about this revenue stream here: wafer revenue.

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What is driving the significant growth in TSMC’s wafer revenue?

Several factors are driving the significant growth in TSMC’s wafer revenue:

• Advanced Process Technologies: TSMC’s adoption of advanced process technologies, such as the 5nm, 4nm, and 3nm nodes, has been a major growth driver. These advanced processes are used in high-performance computing (HPC) products, flagship smartphones, and AI chips, which are in high demand.
• AI Deployment: The increasing deployment of AI technologies, both in data centers and edge devices, has led to higher wafer consumption per unit. AI chips require advanced manufacturing processes, which TSMC is well-equipped to provide.


• Supply Chain Recovery: The recovery of supply chains, particularly in the automotive and industrial sectors, has contributed to increased demand for semiconductor wafers. As these industries restock and ramp up production, TSMC benefits from the higher demand.
• Cloud AI Infrastructure: The expansion of cloud AI infrastructure has driven the need for more powerful and efficient chips, which TSMC produces. This trend is expected to continue, further boosting wafer revenue.
• Geopolitical Factors: TSMC’s strategic investments in new fabrication plants, such as the one in Phoenix, Arizona, supported by the U.S. Chips Act, help mitigate geopolitical risks and bring production closer to key customers in North America. This proximity to major markets enhances TSMC’s competitive edge.
• Diverse Customer Base: TSMC’s extensive customer base, including major players in the tech industry, ensures a steady stream of orders for its semiconductor wafers. The company’s reputation for quality and reliability makes it a preferred supplier.
• Market Leadership: TSMC’s position as a leader in the semiconductor industry, with a significant market share, allows it to capitalize on industry-wide growth trends. The company’s strong technological edge and customer base contribute to its revenue growth.

These factors collectively contribute to TSMC’s robust wafer revenue growth, positioning the company as a key player in the global semiconductor market.

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Insight & Summary of TSMC’s Revenue By Process Node

The following analysis consolidates the trends observed across TSMC’s revenue by process node for the 2018–2025 period.

• TSMC’s wafer revenue grew from NT$911B ($29.2B) in 2018 to NT$3,273B ($104.7B) in 2025 — a 3.6x expansion driven by the relentless migration of customer demand toward leading-edge process nodes, where TSMC maintains an effective manufacturing monopoly and commands the highest pricing premiums in the industry. The compositional shift of revenue toward advanced nodes — defined here as 7nm and below — is the defining structural trend of the period.

• In 2018, advanced nodes represented just 9.0% of wafer revenue, confined entirely to 7nm. By 2025, the combined contribution of 3nm and 5nm alone reached 60.4% of total wafer revenue — a transformation that has fundamentally repositioned TSMC from a diversified foundry serving multiple technology generations to a business where the majority of revenue and virtually all margin expansion is driven by a handful of leading-edge nodes serving AI, high-performance computing, and premium smartphone applications.

• The 5nm node has been the primary revenue workhorse of the advanced node transition, growing from its commercial launch contribution of NT$90.9B in 2020 to a peak share of 34.3% in 2024 before expanding further in absolute terms to NT$1,179.9B ($37.8B) in 2025 — the single largest node revenue contributor in the dataset. The 5nm ramp was exceptional in pace and scale: from 7.7% of wafer revenue in 2020 to 25.5% in 2022 in just two years, driven by Apple’s successive iPhone generations and the initial wave of AI accelerator demand from Nvidia and AMD.

• The 3nm node followed a similar but faster commercial ramp — entering at 5.7% of wafer revenue in 2023 and expanding to 24.3% in 2025, achieving in two years a revenue share that took 5nm three years to reach. The 325.3% growth in 3nm revenue in 2024 — the largest single-node growth rate in the dataset — reflects the simultaneous ramp of Apple’s A17 Pro and M3 chips alongside Nvidia’s Blackwell-related initial production, confirming that AI and premium mobile demand are driving 3nm adoption at an unprecedented pace. By 2025, 3nm revenue of NT$794.3B ($25.4B) and 5nm revenue of NT$1,179.9B ($37.8B) together represent 60.4% of total wafer revenue — a concentration that would have appeared implausible at the start of the period.

• The 7nm node has been the most instructive case study in leading-edge node lifecycle management. Entering the period in 2018 as the most advanced commercially available node at just 9.0% of revenue, 7nm rapidly became TSMC’s largest single revenue contributor — peaking at 33.5% of wafer revenue in 2020 and $17.1B in 2022 — before declining as customers migrated to 5nm and 3nm. By 2025, 7nm has declined to 14.0% of wafer revenue and $14.7B, still a meaningful contributor but structurally in decline.

• This lifecycle — from leading-edge workhorse to mature node — is now being replicated by 5nm, which will likely follow a similar trajectory as 3nm and 2nm ramp in subsequent years. The 10nm node has effectively disappeared, declining from 10.6% in 2018 to zero by 2022 — a characteristic of an intermediate node that was commercially narrow and rapidly superseded by the more cost-effective and performant 7nm generation.

• Legacy nodes — encompassing 16nm and below — have maintained a stable but declining aggregate share, compressing from approximately 58% of wafer revenue in 2018 to approximately 16% by 2025. Within this group, 16nm has been the most durable, generating NT$215.7B ($6.9B) in 2025 and maintaining relatively stable absolute revenue despite declining from 20.6% to 6.6% of the mix — reflecting the longevity of demand from automotive, IoT, and networking applications that do not require leading-edge process technology. The mature nodes — 28nm, 40/45nm, 65nm, and older — have collectively declined in revenue share but remain commercially relevant, particularly 28nm which generated NT$225.1B ($7.2B) in 2025 at 6.9% of mix and actually grew 19.7% in 2025, driven by mature process demand from automotive and industrial customers.

• The overall process node revenue distribution confirms that TSMC’s business has undergone a structural transformation — from a broadly diversified foundry across multiple generations to a business where competitive differentiation, pricing power, and growth are almost entirely concentrated at 5nm and below, with legacy nodes providing stable but strategically secondary revenue that sustains manufacturing utilization without driving incremental value creation.

The table below combines all TSMC’s revenue by process node into a single view for the latest 3 periods.

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Revenue Numbers (NT$): all rocess nodes from 3nm to 0.25 micron and above

The definitions of several of TSMC’s parameters are available here: wafer revenue, process nodes, and nanometer.

TSMC reports its financial statements primarily in New Taiwan Dollars (TWD). You can find more information about the currency exchange rates between TWD and the US dollar here: New Taiwan Dollar (TWD).

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Revenue Numbers (US$): all process nodes from 3nm to 0.25 micron and above

The definitions of several of TSMC’s parameters are available here: wafer revenue, process nodes, and nanometer.

TSMC reports its financial statements primarily in New Taiwan Dollars (TWD). You can find more information about the currency exchange rates between TWD and the US dollar here: New Taiwan Dollar (TWD).

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Revenue Mix: all process nodes from 3nm to 0.25 micron and above

The definitions of several of TSMC’s parameters are available here: revenue mix by process node, wafer revenue, process nodes, and nanometer.

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Revenue Growth: all process nodes from 3nm to 0.25 micron and abovee

The definitions of several of TSMC’s parameters are available here: wafer revenue, process nodes, and nanometer.

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Credits and References

1. All financial figures presented were obtained and referenced from TSMC’s annual reports published on the company’s investor relations page: TSMC Annual Reports.

2. Pexels Images.

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Disclosure

We may utilize the assistance of artificial intelligence (AI) tools to produce some of the text in this article. However, the data is directly obtained from original sources (usually the quarterly and annual reports) and meticulously cross-checked by our editors multiple times to ensure its accuracy and reliability.

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