TSMC completes 1.6nm chip development, eyes Q4 production

Taiwan Semiconductor Manufacturing Company (TSMC) ↗ 0.71% has completed development and validation of its 1.6-nanometer A16 process node, with mass production targeted for the fourth quarter of 2026, according to Taiwanese supply chain reports published on August 20.biz.chosun+1

The A16 process represents the first commercial implementation of TSMC's "Super Power Rail" backside power delivery network (BSPDN) technology, which moves power wiring to the back of the wafer and delivers electricity directly to transistor source and drain regions through vertical backside contacts. The approach separates signal and power routing, reducing bottlenecks and improving both power efficiency and performance while maintaining compatibility with existing front-side chip designs.mk+1

Performance and Market Target

Compared with TSMC's N2P enhanced 2nm process, A16 delivers 8% to 10% better performance at the same power consumption, or 15% to 20% lower power at the same performance, with chip density improvements of 8% to 10%. The process is aimed primarily at artificial intelligence and high-performance computing applications.biz.chosun+1

TSMC views A16 as a stepping stone toward its next-generation A14 (1.4nm-class) process, which is targeted for mass production in 2028.mk

Competitive Landscape

The timeline reinforces TSMC's lead over rivals in the sub-2nm manufacturing race. Samsung Electronics recently postponed its SF1.4 (1.4nm-class) process from 2027 to 2029, choosing to focus on improving yields for its 2nm SF2 series. Intel ↘ 2.24% is pushing forward with its 18A process (approximately 1.8nm-class), but its next-generation 14A node is not expected to reach mass production until 2028.tradingkey

TSMC's board approved $29.4 billion in capital expenditures on August 11 for advanced processes and packaging. Reports also indicate that growing demand for AI semiconductors has tightened TSMC's advanced CoWoS packaging capacity, leading to some packaging volumes being shifted to Intel's Malaysia plant.biz.chosun+1

Liu Pei-chen, a researcher at the Taiwan Institute of Economic Research, told Taiwanese media that the broader semiconductor ecosystem is moving toward greater specialization and regional complementarity, suggesting the industry may evolve beyond a winner-takes-all structure as AI demand expands.mk