According to media reports, NXP's next-generation high-performance automotive-grade chips will be manufactured using TSMC's 5nm process. TSMC will deliver the first batch of 5nm process samples to NXP in 2021.

The main customers of TSMC's 5nm process are currently Apple and Hisilicon. However, due to the impact of the US ban on Huawei, analysts believe that TSMC's 5nm process may experience a decline in capacity utilization in the fourth quarter of this year.

TSMC said that it has already successfully cooperated with NXP in the 16nm process. After expanding the scope of cooperation, NXP's next-generation automotive processors will use TSMC's 5nm process to produce SoCs. NXP will provide products with multiple functions and workload requirements, including connected cockpit, high-performance domain controllers, autonomous driving, advanced networks, hybrid propulsion control, and integrated chassis management (integrated chassis management).

TSMC emphasizes that the 5nm process technology is currently the world's most advanced mass production process. Compared with the previous generation 7nm process, its speed is increased by about 20% and power consumption is reduced by about 40%.