TSMC is the world's most advanced chip manufacturing technology manufacturer, but not all of them have made the decision. TSMC is wrong in expanding production.
After the global chip shortage, major wafer factories are actively expanding production, and SMIC invested more than 100 billion yuan, expanding the production capacity of 28nm and other chips .
However, TSMC Liu Deyin said that the market demand for chips such as 28nm has been saturated, and TSMC will focus on advanced process chips to expand production.
It is reported that TSMC not only announced an investment of US$100 billion to build a factory, but also set its capital expenditure in 2022 to US$44 billion, mainly to expand the production capacity of advanced chips.
As a result, in the second half of 2022, the advanced chip production capacity was oversold. TSMC continuously reduced capital expenditures of US$8 billion, encouraged employees to take more vacations, shut down some EUV lithography machines, and even cut orders in some supply chains.
news said that due to orders from Nvidia, AMD and other core companies, the capacity utilization rate of of TSMC's 7nm process, 40% or 50% was reduced.
Under such circumstances, TSMC had to make adjustments and prioritized importing Kaohsiung factory into 28nm and other process chips.
You should know that TSMC's Kaohsiung factory mainly produces chips such as 7nm, but now it has changed from 7nm to 28nm, which means that TSMC Liu Deyin was slapped in the face.
Because Liu Deyin has always advocated expanding advanced technology chips, he does not pay enough attention to mature technology.
In addition, TSMC Wei Zhejia, Chairman of Liji Electric and ASML all believe that there are greater opportunities for mature process chips in the future.
TSMC Wei Zhejia said that new energy vehicle has brought huge opportunities to mature chips, which is even greater than that of smartphones.
The reason is that the number of chips used by new energy vehicles is several times that of smartphones, and there are other devices such as the Internet of Things. Chips with mature crafts are more suitable for these industries. Chairman Liji Electric also agrees with this view.
lithography machine giant ASML also publicly stated that the production capacity of advanced process chips is already overcapacity, and chips of mature processes are still in short supply. Due to the large demand for mature process chips, ASML has repeatedly expanded the production capacity of DUV lithography machines.
Of course, the production capacity of advanced process chips is overcapacity and mature processes are in popularity, which means that SMIC has taken a perfect step.
First of all, among the global chip manufacturers, SMIC was the first to announce the expansion of chips such as 28nm, and has invested three times to expand production capacity.
Now, the demand for chips for mature processes is still increasing and in a shortage. SMIC expects to be able to industry in 2023, and will add more than 100,000 per month of production capacity by then.
At the same time, SMIC has long purchased DUV lithography machines and other equipment worth US$1.1 billion, and is preparing for the future.
After all, ASML has also failed to deliver on time due to chips and other issues, and the orders can not be completed until 2024.
Secondly, SMIC continues to reduce the risks of mature process chips.
Liang Mengsong once publicly stated that the risks of chips with SMIC's 28nm processes have been further reduced.
In addition, SMIC's mass-produced chips dare to compare with international manufacturers, which shows that SMIC's yield rate is also world-class.
According to the latest data released by SMIC, shipments in the third quarter of this year fell slightly, but the average unit price rose slightly due to product portfolio optimization, which means SMIC is introducing more orders for processes such as 28nm/14nm.
Plus, the Chinese market is the world's largest new energy vehicle and the world's largest exporter of new energy vehicle, which will drive the rapid growth of chip orders for mature processes.
What's more, after the chip rules are modified, domestic manufacturers have continuously reduced their dependence on imported chips and adopted more domestic chips developed and produced.
It is precisely because of this that it is said that 7nm becomes 28nm, TSMC Liu Deyin was "slapped in the face" and SMIC took a perfect step.
