On August 20, Taiwanese media outlets reported that TSMC has triumphantly concluded the research, development, and verification phases of its 1.6nm-class A16 process. The company is now gearing up to commence mass production in the fourth quarter of this year. This cutting-edge process incorporates a backside power delivery network technology dubbed 'Super Power Rail (SPR).' This innovation effectively mitigates routing bottlenecks, bolsters energy efficiency and performance, and maintains compatibility with existing designs by segregating power and signal lines and delivering power from the backside of the wafer.

The A16 process is predominantly tailored for the AI and high-performance computing sectors. When pitted against the enhanced 2nm process N2P, it delivers an 8%-10% performance boost at equivalent power consumption levels, a 15%-20% reduction in power consumption at the same performance tier, and an 8%-10% uptick in chip density. The A16 process is widely regarded as a pivotal stepping stone towards the 1.4nm-class A14 process, which is slated to enter mass production in 2028. Moreover, TSMC is consistently ramping up its investments in advanced process and packaging capacities. On August 11, its board of directors greenlit a capital expenditure of approximately USD 29.4425 billion to fuel expansion in these areas.