Taiwanese foundry TSMC told investors earlier today that it expects 10nm demand will soar this year. Apple, which is TSMC's largest customer, is ramping up production of the iPhone X and that will be a major boon to TSMC's 10nm revenue. TSMC is now more upbeat about demand for its 10nm node than a quarter ago.
Production on the 10nm node started in Q2 2017 and is expected to account for about $3.2 billion in revenue this year. Analysts estimate close to 25 percent of TSMC's revenue this quarter will be generated by 10nm sales, but they're worried about a drop in Q1 2018 due to the seasonality of smartphone sales:
“For the fourth quarter, 10nm will be about 25 percent of your total revenue,” Citigroup analyst Roland Shu said to the TSMC executives at the Taipei event. “With this high figure for the fourth quarter, are you worried about the first quarter of next year?”
Shu’s calculation “is quite close to the number we have,” [TSMC Co-CEO CC] Wei replied. “In smartphones, there is that seasonality. We don’t know the impact yet, but our customer is working on migration to the next node. That will ramp up in the second half of next year.
More details about TSMC's financials can be read at EE Times.