Part 5/10:
Why Are Smaller Nodes So Important?
The process node size refers to the feature size on the chip—smaller nodes mean more transistors packed into the same area, resulting in chips that are faster, more power-efficient, and capable of handling larger AI models. TSMC’s leadership here gives them a technological edge—most competitors are still working on or behind in these advanced nodes.
Massive Capacity and Bookings
All advanced chip capacity—particularly for 5nm and below—is fully booked through 2027, making revenue streams highly reliable. This locking in of capacity, combined with their cutting-edge yield rates, solidifies their position as the primary fabricator for the world’s most sophisticated chips.