chip manufacturing industry has entered the 3nm process era. After Samsung completes 3nm mass production at the end of June, TSMC will also achieve 3nm mass production in the second half of the year. However, unlike the practice of layout of high-end processes, SMIC chose a mature 28nm process to increase the construction of a 12-inch wafer factory.
What is the need for SMIC to develop a 28nm process when major giants compete for high-end chips? Regarding 28nm, what is TSMC’s layout?
28nm demand has expanded. SMIC has selected the right
technology giants are pursuing the ultimate performance chip technology. Apple , Nvidia, and Qualcomm and other companies need to use high-end processes such as TSMC 5nm and 4nm to produce flagship chip products.
In addition, according to TSMC's plan, TSMC will mass-produce the upgraded version of the N3E process in 2023, and customers are very interested in this process. However, the development of high-end processes does not mean that mature processes are outdated, but instead ushers in a larger core making boom.
Many people have stereotypes about 28nm, and believe that 28nm is a backward and outdated, or even obsolete process, with no market demand and no huge market size.
is not the case. Although 28nm seems much bleak under the development of high-end technology, it does not mean that 28nm is a backward and outdated technology. Depending on the needs, the value shown by 28nm is also different.
If it is in the smartphone industry, 28nm does not have much application range, because the common mobile phone SOCh chips are 7nm and 5nm processes, and even 3nm processes will be used in the next few years.
However, the demand for 28nm is now expanding. The development of new energy vehicles has brought the industry into the era of intelligence and digitalization, and there are more needs for chips, and this type of chip generally uses the 28nm process. In addition, the rise of emerging industries such as 5G, IOT, and AI has also prompted greater demand for 28nm. Compared with high-end processes, mature processes have a wider application coverage and greater potential. These demand conditions have led to the 28nm market size maintaining good growth. As the saying goes, demand determines the market. SMIC's active deployment of 28nm is a trend. Under the trend, efforts and returns will definitely be proportional.
So, in the case of major giants competing for high-end chips, what is the need for SMIC to develop 28nm? Demand is one aspect, but the most important thing is to help move forward down-to-earth and give full play to the production capacity advantages of mature processes by learning from their strengths and weaknesses.
SMIC is currently unable to obtain EUV lithography machines, but there is no problem in purchasing DUV lithography machines. SMIC once spent US$1.1 billion to purchase lithography machine from ASML, which involves DUV equipment. Using these devices can help SMIC provide production capacity for mature processes.
After having production capacity, it can take on more orders. Orders can bring revenue, and then use revenue as R&D investment to deepen technology.
So taking the path that suits you is the best choice. After SMIC has laid out 28nm, the market demand for this part has continued to expand. It seems that SMIC has stabilized this time. You can definitely exert the accumulated value of mature process production capacity and obtain returns proportional to your efforts.
What is the layout of TSMC for 28nm?
8nm ushered in its industry peak from 2015 to 2016. At that time, almost all smartphone chips on the market used the 28nm process. All manufacturers who can master the 28nm process are industry giants.
As time goes by, more and more manufacturers have mastered 28nm, and giants such as TSMC and Samsung have made more process breakthroughs, continuing to lead the development of high-end processes, causing mature chips to lose market popularity.
Currently, high-end chips are also declining in the face of declining demand for smartphones.
Industry survey shows that TSMC's 7nm capacity utilization rate will be reduced from 100% to 90%, and 4 EUV lithography machines will be shut down to save power consumption.TSMC must have also paid attention to this phenomenon, and it is estimated that it will also shift the focus of production capacity and fill the decline in capacity utilization rate to mature process production lines. So, what is TSMC’s layout regarding 28nm?
In fact, TSMC has many 28nm factories under construction and expansion projects. For example, the 28nm production line was expanded at the Nanjing factory, which greatly increased production capacity. There is also a 22nm/28nm factory in Japan to provide support to the local chip industry.
In addition, TSMC has set up a Nanzi Industrial Park wafer manufacturing project in Kaohsiung City, the headquarters. The manufacturing project supports a 28nm process and is mass-produced as soon as 2024.
In other words, TSMC will continue to expand its 28nm production capacity and build more mature chip factories to meet market needs. But this will not be done in a short time. TSMC has placed most of its production capacity in high-end processes. If you want to go back and develop mature chips, you may not be able to achieve ideal results.
, and there are many competitors in 28nm chips. SMIC's active expansion of production of 28nm may strive for greater market advantages.
summary
As a global chip manufacturing giant, TSMC has a very strong ability to understand the industry. TSMC President Wei Zhejia admitted that the production capacity of low-end chips is ignored and the existing factories cannot meet the needs of low-end chips.
TSMC will definitely increase the expansion of production by 28nm, but it is unknown what effect it will achieve in the end. Let's wait and see.
What do you think is necessary to layout 28nm? Welcome to leave a message below to share.
