TSMC has announced that it will begin volume production of 16nm FinFET products in the second half of 2015, in late Q2 or early Q3.

For consumers, this means products based on TSMC 16nm FinFET silicon should appear in late 2015 and early 2016. The first TSMC 16nm FinFET product was announced a few weeks ago.

7-9% of revenue in Q4 2015

TSMC executive CC Wei said sales of 16nm FinFET products should account for 7-9% of the foundry's total revenue in Q4 2015. The company already has more than 60 clients lined up for the new process and it expects 16nm FinFET to be its fastest growing process ever.

Although TSMC is not talking about the actual clients, we already know the roster looks like the who's who of tech, with Qualcomm, AMD, Nvidia and Apple on board.

This also means the 20nm node will have a limited shelf life. The first 20nm products are rolling out as we speak, but the transition is slow and if TSMC sticks to its schedule, 20nm will be its top node for roughly a year, giving it much less time on top than earlier 28nm and 40nm nodes.

The road to 10nm

TSMC's 16nm FinFET, or 16FinFET, is just part of the story. The company hopes to tape out the first 10nm products in 2015, but there is no clear timeframe yet.

Volume production of 10nm products is slated for 2016, most likely late 2016. As transitions speed up, TSMC capex will go up. The company expects to invest more than $10bn in 2015, up from $9.6bn this year.

TSMC expects global smartphone shipments to reach 1.5bn units next year, up 19 percent year-on-year. Needless to say, TSMC silicon will power the majority of them.