TSMC's Q2 2024 revenue from China soared to 16% (up from 9% last quarter), fueled by BitMain's shipments of 3nm mining ASIC chips. This marks a significant rebound in TSMC's China market engagement after prolonged stagnation. While GPU/CPU shipments face compute power restrictions, Chinese IC designers—including mining and mobile processor chips—are progressively adopting 3nm technology.
TSMC's Client Hierarchy and Market Shifts
Apple remains TSMC's undisputed top client, but the AI boom has solidified Nvidia as the permanent second. Post-HiSilicon (Huawei's chip division), Unisoc emerged as TSMC's largest Chinese client, though its revenue pales in comparison to HiSilicon's heyday. Intel is poised to ascend as a top-three TSMC client soon, joining Apple and Nvidia.
👉 Explore how crypto mining reshapes semiconductor demand
China's Advanced-Node Adoption Challenges
Chinese IC firms face stringent compute power limits for advanced nodes (7nm/5nm/3nm). To comply, some GPU manufacturers redesign downgraded chips. Mining ASICs, however, circumvent these restrictions—their singular purpose (accelerating cryptocurrency mining) doesn't classify as complex computation.
Key Exceptions:
- Mining chips prioritize speed over multifunctionality.
- Mobile processors (e.g., Xiaomi's upcoming 4nm/3nm plans) fill voids left by defunct projects like OPPO's Zeku.
BitMain's Semiconductor Journey
BitMain revolutionized mining by transitioning from CPU/GPU to ASICs. Their milestones:
- 2013: 55nm ASICs
- 2017: 16nm breakthrough (surpassing HiSilicon's progress)
- 2024: 3nm deployment, reclaiming TSMC's top-China-client status
Despite crypto volatility, BitMain once accounted for >10% of TSMC's global revenue (2017). Their brief AI chip venture folded quickly.
The Broader Semiconductor Landscape
Nvidia's GPUs rode successive waves—gaming, crypto, and now AI—each eclipsing the prior. Meanwhile, BitMain's ASICs and Xiaomi's revived mobile processors exemplify China's strategic pivots.
👉 Why 3nm technology matters for future devices
FAQ Section
Q: Why are mining chips exempt from compute power restrictions?
A: They perform specialized, non-general computations—unlike GPUs/CPUs used for multipurpose high-performance tasks.
Q: What killed OPPO's Zeku 3nm mobile chip project?
A: Sudden shutdown in mid-2023; industry speculates financial pressures or strategic shifts.
Q: How might Xiaomi's 3nm chips impact the market?
A: They could replace Zeku's role, intensifying competition with Qualcomm/MediaTek in China's mid-range segment.