TSMC responds to reports of slippages in advanced chipmaking technology

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The Taiwan Semiconductor Manufacturing Firm (TSMC) has responded to experiences that its cutting-edge 3-nanometer (nm) chip manufacturing know-how is affected by delays. Earlier immediately, experiences from analysis companies TrendForce and Isaiah Analysis highlighted that TSMC’s 3nm course of will face delays and have an effect on the corporate’s partnership with US chip big Intel Company – which itself is affected by manufacturing issues for a number of years.

TSMC’s response was a typical boilerplate, as the corporate declined to touch upon buyer orders and pressured that manufacturing know-how was continuing on schedule.

TSMC stresses capability growth plans are on schedule following hiccup experiences

The 2 experiences have been the most recent in a collection of stories that solid doubt on TSMC’s 3nm manufacturing plans. The primary information got here earlier this yr, when it was initially rumored after which confirmed that Korean chipmaker Samsung Foundry would launch 3nm manufacturing forward of TSMC.

Statements from TSMC chief Dr. CC Wei mentioned his firm would begin manufacturing the 3nm chips within the second half of this yr. as TSMC seeks to keep up the technological prowess that has made it the world’s largest contract chipmaker.

TrendForce’s report shared that the corporate believes the delay in 3nm manufacturing for Intel will harm TSMC’s capital expenditures, as it could find yourself reducing bills in 2023. He additionally wasn’t shy about blaming Intel, saying the design issued initially jumped 1H 2023 manufacturing from 2H 2022 – which has now been postponed till late 2023.

This in flip has affected TSMC’s capability utilization estimates – and the corporate is cautious of unused capability because it struggles to safe 3nm orders. TrendForce additionally introduced that Apple will likely be TSMC’s first 3nm buyer – with merchandise to be launched subsequent yr, and AMD, MediaTek and Qualcomm to mass-produce 3nm merchandise in 2024.

Isaiah Analysis was extra forthcoming with the small print of the delay, because it shared the variety of wafers initially imagined to be made and the lower after the alleged delay. Isaiah identified that TSMC initially deliberate to provide 15,000-20,000 3nm wafers monthly by the top of 2023, however that has now been decreased to five,000-10,000 wafers monthly.

Nevertheless, responding to spare capability worries left as a result of discount, the analysis firm remained optimistic because it identified that almost all of kit (80%) for superior manufacturing processes equivalent to 5 nanometers and three nanometers are interchangeable, which means that TSMC retains the opportunity of utilizing it for different prospects.

TSMC’s response to the entire matter despatched to Taiwanese publication United Every day Information was transient, with the corporate stating that:

“TSMC doesn’t touch upon the actions of particular person prospects. The corporate’s capability growth venture is continuing as deliberate.”

The semiconductor trade, which is at the moment going through a historic slowdown as a result of mismatch of provide and demand following the coronavirus pandemic, has for a while been considering capability cuts and capital expenditure. Chinese language foundries have decreased their common promoting costs (ASP) and chipmakers in Taiwan have began providing totally different costs for various nodes to make sure demand doesn’t lower.

TSMC, nonetheless, has made no such announcement, and the difficulty of balancing capability cuts and a restoration in demand, particularly for brand new merchandise, stays a thorn within the facet of chipmakers. , as on the one hand they threat overspending on idle machines and on the opposite, decreasing income seize ought to demand choose up.