OpenAI to Develop In-House Chips Using TSMC's Advanced A16 Process

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TSMC’s new A16 chip, made with its multiple progressive Angstrom-level technology, is already causing a lot of excitement, even before it officially begins mass exhibit.

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Industry insiders say that Apple, one of TSMC’s largest customers, has already secured the first collection of the A16 chips. Surprisingly, OpenAI, a top artificial intelligence company, has confirmed some of TSMC’s A16 capacity. This determination is part of OpenAI’s plan to design custom AI Hardware Development chips for their long-term needs.

Having a significant AI company like OpenAI In-House involved is likely to raise attention and demand for TSMC’s AI-related products. Initially, OpenAI was designed to have TSMC build a reliable chip production facility for them. 

However, after reviewing, OpenAI collaborated with American companies like Broadcom and Marvell to create their ASIC chips instead. This shift in approach means OpenAI In-House Chips will likely become one of Broadcom’s top customers.

This partnership between OpenAI and American chip makers like Broadcom and Marvell is important for TSMC. Broadcom and Marvell are long-time clients of TSMC, and now, the custom chips they’re creating with OpenAI will be manufactured using TSMC’s refined processes. 

These chips are predicted to use TSMC’s 3nm technology and the new TSMC A16 Process, which aligns with their prospective chip designs.

TSMC is desiring a big technological breakthrough with its A16 process, marking its entry into the “Angstrom era” of chip production, representing a new level of miniaturization. Mass production of the A16 chips is expected to start in the second half of 2026 at TSMC’s facilities in Taiwan.

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Syed Sadat Hussain Shah

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