Taiwan Semi Sets 2026 Launch for A16 Chip Technology, Aiming to Outpace Intel in Speed

Taiwan Semiconductor Manufacturing Co TSM announced on Wednesday that its new chip manufacturing technology, “A16,” will start production in the second half of 2026.

The 1.6-nm chipmaking technology will position TSMC against Intel Corp INTC in a competition to produce the world’s fastest chips. 

TSMC, the largest contract manufacturer of advanced computing chips and a crucial supplier to Nvidia Corp NVDA and Apple Inc AAPL, announced this at a Santa Clara, California conference, Reuters reports. 

Also Read: AMD and Intel Lead the AI Revolution in Data Centers, Highlighting Advanced GPU Breakthroughs

TSMC executives indicated that AI chip manufacturers would likely be the first to adopt this technology, unlike smartphone companies.

Intel had already voiced the availability of 20A and 18A (2-nm and 1.8-nm) technologies by 2025, Nikkei Asia reports.

It had showcased its 14A (1.4-nm) technology in 2024. Meanwhile, Samsung Electronics Co SSNLF is targeting commercialization of the 1.4-nm level in 2027.

Analysts speaking to Reuters said the technologies TSMC unveiled on Wednesday could challenge Intel’s February claims of surpassing TSMC with its new “14A” technology. 

Kevin Zhang, TSMC’s Senior Vice President of Business Development, told reporters that the company accelerated the development of its A16 chipmaking process due to demand from AI chip firms.

Zhang also stated that TSMC does not see the need to use ASML Holding NV’s ASML new “High NA EUV” lithography tool machines for constructing A16 chips. 

In contrast, Intel recently disclosed plans to be the first to use these machines, priced at $373 million each, for its 14A chip development.

Furthermore, TSMC introduced a new technology for delivering power to computer chips from the backside, which will be available in 2026 and enhance the speed of AI chips. 

In April, TSMC reported first-quarter revenue of $18.5 billion, up by 16% year-on-year, versus the $18.4 billion analyst consensus estimate, thanks to the artificial technology frenzy. 

It expects capital expenditures of $28 billion—$32 billion and revenue growth of at least 20% in 2024.

Taiwan Semiconductor stock gained 62% in the last 12 months. Investors can gain exposure to the stock via VanEck Semiconductor ETF SMH and IShares Semiconductor ETF SOXX.

Price Action: TSM shares are trading lower by 1.02% at $131.62 premarket at the last check on Thursday.

Also Read: Samsung’s Latest 3D NAND Memory Chips Transform AI Data Centers and Mobile Devices

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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