In TSMC's Q3 earnings call, details have surfaced about how the 5nm process will affect TSMC's finances. Long term, TSMC expects 5nm to be a 'long and large' node, meaning it'll sell in high quantities and remain key to the business for a long time.
This quarter, TSMC expects the 5nm process to account for just 8 percent of the revenue. Next year in 2021, the expectation is that it will land around 20%, though TSMC's CEO did not want to quote an exact prediction yet.
Although at this time no number can be given, TSMC stated that it is witnessing strong tape-out activities from the 5nm node in its key applications.
Long term, TSMC's target is to achieve a gross margin of 50% on production, however, for the coming year the 5nm node will reduce this figure by 2 to 3 percent, and unfavorable exchange rates are also pulling the number down a little.
