Report Says TSMC Ready to Mass Produce 1.6nm A16 Chips in Q4, but Is It Ahead of Intel and Samsung?

TradingKey - According to the latest supply chain reports, TSMC (TSM) has completed the development and validation of its 1.6nm-class A16 process node, targeting the start of mass production in the fourth quarter of 2026. This timeline is largely consistent with TSMC's previous official statement that "A16 will enter mass production in the second half of 2026," indicating that following 2nm, the company's next-generation advanced process node is accelerating into the commercialization phase.

A16 is primarily targeted at AI and high-performance computing chips. Compared with N2P, according to data disclosed by TSMC, A16 offers an 8% to 10% performance increase at the same power consumption, or a 15% to 20% power reduction at the same performance. A16 also introduces Super Power Rail backside power delivery technology, which moves part of the power supply circuitry to the back of the wafer, freeing up more space on the front side of the chip and making it better suited for higher-power, larger-scale AI processors.

In terms of global advanced process competition, TSMC currently holds a relative lead in mass production pacing. Samsung Electronics is focusing on pushing forward its SF2 series 2nm process and has secured long-term orders from customers including Tesla; however, the company recently adjusted its advanced process roadmap, postponing its SF1.4 (1.4nm-class) process—originally scheduled for 2027—to 2029, and will prioritize improving 2nm process yields and commercialization capabilities over the next few years. This means that in the competition for sub-2nm processes, Samsung's timeline currently trails TSMC's A16.

Intel (INTC) takes a different route. The company is currently focusing on pushing forward Intel 18A (about 1.8nm-class) and its upgraded version 18A-P, which have entered early manufacturing stages; its next-generation Intel 14A (1.4nm-class) is planned to enter risk production in the second half of 2027 and achieve mass production in 2028. This means Intel 14A is nominally a step ahead of TSMC's A16, but its mass production timeline is expected to be about two years later, and whether it can secure enough major external foundry customers remains a key focus for the market.

For TSMC, this timing advantage is crucial. AI chips are becoming one of the most important growth markets for advanced process nodes. If A16 enters mass production in the fourth quarter as planned, the company could secure a batch of high-end AI and HPC orders ahead of time, before Samsung and Intel ramp up their next-generation processes.

At the same time, advanced processes have become an important pillar of TSMC's future revenue growth. As N2, N2P, and A16 scale up successively, advanced process nodes with higher unit prices are expected to increase the revenue contribution from AI and further consolidate TSMC's market share of over 70% in the global foundry market. In the first quarter of 2026, Samsung's global foundry revenue share was approximately 7%, leaving a clear gap with TSMC. Although Samsung is benefiting from order spillovers due to TSMC's tight capacity, and Intel is making noticeable progress in advanced processes, both companies still need to prove that their new processes can achieve stable high-yield mass production and fulfill orders from large-scale customers.