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

June 20 news, since the second half of last year, due to the decline in demand for consumer electronic products, the chip industry has also entered a "cold winter", many manufacturers have been affected, Samsung Electronics, SK Hynix and other memory chip manufacturers are particularly obvious.

Similarly, wafer foundry TSMC, which holds orders from Apple, Nvidia, AMD and many other manufacturers, has also been affected. Its revenue declined significantly in the first quarter from the previous quarter, and is expected to decline in the second quarter compared with the same period last year.

TSMC's revenue decline means that their capacity utilization has declined. At the end of last year, it was also reported that TSMC's capacity utilization is expected to fall to 80% in the first half of this year. 5nm and 7nm, the two major revenue sources, capacity utilization will decline. At the beginning of this year, it was reported that the capacity utilization of TSMC's 5/4nm process could fall below 70 per cent.

However, according to the latest reports from the relevant media, the capacity utilization of TSMC 7nm and the following advanced process technology has slowly rebounded after entering June.

Although the relevant media reports did not clearly mention the reasons for the rebound in production capacity utilization of TSMC's 7nm and below processes, it is expected to be related to the increase in demand for artificial intelligence chips driven by ChatGPT, and recently it has also been reported that the major supplier Nvidia has increased its orders with TSMC.

In addition, the relevant media also mentioned in the report that TSMC is preparing for a new wave of chip demand growth in 2024 as major customers restart or expand orders.

The rebound in capacity utilization and the restart or increase of orders by major customers means that TSMC's revenue will rebound for some time to come.

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