Shulou(Shulou.com)11/24 Report--

CTOnews.com Sept. 7 news, according to Digitimes, supply chain industry insiders said, due to customer reduction orders, TSMC 7nm capacity utilization will gradually decline. Due to the slowdown in market demand, TSMC decided to temporarily slow the expansion of the Kaohsiung plant, and the capacity utilization of the 7nm production line is expected to be less than 90 per cent in 2023.

Taiwan's Economic Daily said that TSMC's advanced manufacturing process may be defaulted by customers and will shut down the EUV machine to slow down production capacity.

JPMorgan Chase also confirmed the rumor after an investigation. Analysts pointed out in the latest report that TSMC faces orders from four advanced process customers, including MediaTek, AMD, Qualcomm and Nvidia, and plans to shut down four EUV lithography machines to reduce output. At that time, monthly production capacity will plummet by 15,000 pieces, and profits may decline by 8% next year, the first decline in profits in three years.

In addition, the source of the industry chain @ Mobile Chip Talent also revealed that as the capacity utilization of TSMC's advanced processes began to decline, and the decline will continue for a period of time after the evaluation, TSMC plans to shut down some of the EUV lithography machines from the end of this year, in order to save the huge power consumption of EUV lithography machines.

In response, TSMC responded that it "does not comment on market rumors." However, TSMC reiterated its previous expectation that production capacity would remain tight this year, revenue growth targets would remain unchanged, and growth would continue next year.

TSMC also said that it has an annual plan for machine equipment and follows the plan to carry out routine maintenance and upgrading without affecting normal operation.

CTOnews.com has reported that construction of Nanzi Industrial Park in Kaohsiung City started on August 7. According to reports, TSMC is the only manufacturer stationed in Nanzi Industrial Park, and the start of construction in the park also represents the factory area to enter the stage of plant construction, completing the key jigsaw puzzle of the industrial chain.

TSMC had planned to set up wafer plants in Kaohsiung to produce 7nm and 28nm wafers, which would begin mass production in 2024.

In addition to the Kaohsiung plant, TSMC has also built two wafer plants in Arizona and Kumamoto in Japan. TSMC said the Arizona plant would produce 5nm chips and the Kumamoto plant would use special technology to produce chips.

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