Taiwan Semiconductor Manufacturing Company (TSMC) is scheduled to launch 7nm trial production in the first half of 2017, company chairman Morris Chang said in a report sent to TSMC's shareholders.

At TSMC's investors meeting on April 14, company co-CEO Mark Liu mentioned that more than 20 customers are already engaged with the foundry on its 7nm process technology, and TSMC expects to have 15 customer tape-outs in 2017.

TSMC is scheduled to move its 7nm process technology to volume production in the first half of 2018, according to Liu.

TSMC's 7nm technology leverages 95% the same equipment as 10nm, said Liu, adding that the company is "well on track" with its 7nm development. "N7 is a further extension of N10 technology, with more than 60% in logic density gain and 30% to 40% reduction in power consumption," Liu indicated.

TSMC's 7nm node technology will target production for both mobile and high-performance computing applications, while its 10nm focuses mainly on mobile devices. TSMC has received its customer 10nm tape-outs since the first quarter, and expects more tape-outs in the following quarters, Liu noted. "Sizeable demand" for 10nm will start in the second quarter of 2017, Liu said.