Wei Zhejia: Tight capacity continues next year
Regarding foreign capital's previous revelation of the semiconductor industry's concerns about inventory adjustments and potential order cuts, as well as the recent slowdown in the market's terminal demand (related reading), TSMC President Wei Zhejia responded to this, saying, "Smartphone demand may slow down, but it cannot be comparable to the demand of the semiconductor industry." Reiterating that the tight capacity situation will continue until next year, emphasizing that the supply chain maintains a high inventory level and will continue for a period of time.
He pointed out that the supply chain imbalance caused by the COVID-19 pandemic will continue in the short term. Regardless of whether this phenomenon continues or not, I believe that the company's technological leadership position can grasp the strong market demand for advanced processes and special process technologies. It is also expected that production capacity will continue to be tight this year, and the situation will continue until next year.
Wei Zhejia emphasized that TSMC is entering a higher structural growth range, with the general trend of 5G and HPC related applications, driving a significant increase in demand for high-performance computing and low power consumption in the next few years, and more advanced process technical support is needed. In addition, these major trends not only increase the number of unit products, but also increase the use of semiconductors in high-efficiency computing, smartphones, automotive electronics and Internet of Things related applications. In terms of inventory water level of
, TSMC maintains previous view that compared with historical seasonal inventory levels, customers and supply chains will gradually increase inventory water level in the second half of the year. In order to continue to ensure the stability of the supply chain, customers will maintain a high inventory water level. The statement of
is basically consistent with what he said in April this year. At that time, Wei Zhejia believed that the overall demand for semiconductors in was still strong, and the capacity shortage will reach in 2022; among them, the mature process will not be launched until 2023 because of the new capacity, and the shortage will continue until 2023.
