TSMC’s defense line has been broken, and 7nm production capacity has fallen to 50%

DIGITIME news, the global wafer foundry leader TSMC defense line has broken through, 7nm capacity utilization rate has now fallen below 50%, the decline in the first quarter of 2023 has intensified, Kaohsiung 7nm expansion has also been suspended.

It is understood that at present, there are many IC design customers who strongly cut orders, delay delivery and adjust the order of 7 nm of TSMC. The most influential ones are Media Tek AMD and Qualcomm, as well as Apple and Intel, as well as many domestic players such as Unisoc. In this regard, TSMC has not responded yet.

As 76nm is the largest application product market for smart phones, PC servers and other high-efficiency computing, it also makes the outside world think that the mobile phone PC related supply chain inventory is not good, the pressure of sharp decline in performance has had to take the risk of affecting the long-term cooperation with TSMC and adjust the order, the semiconductor winter is coming in advance, the low temperature has been difficult to predict.

In terms of cell phones, Qualcomm and MediaTek have warned of the seriousness of smartphone inventory, the outlook for the market is very conservative, in which MediaTek has a high proportion of low-end smartphones, the impact is greater, in addition to MediaTek has expected weak performance in the fourth quarter, a quarterly decline in revenue of 20% up and down. Media Tek is also one of the biggest players in the wave of foundry orders, according to foundry makers.

“Chips” comments

As capacity utilization for 7nm and 6nm processes declined in the fourth quarter, TSMC adjusted its 7nm and 6nm capex, which fell to $36bn this year. However, TSMC has already secured a large order to ship nearly 20 million units of Apple’s new Mac series annually in 2023, and will see more orders from global IC design customers when spring comes after inventory is depleted.

Post time: Nov-17-2022