Cut down supply chain orders! TSMC can‘t handle these links

Source: Network

    It is reported that TSMC cut its capital expenditure in 2022 to about 36 billion US dollars for the second time a day ago, with the absolute amount reduced by at least 4 billion US dollars (about 29.2 billion yuan), which means that the business opportunities originally intended to release up to nearly 30 billion yuan to the supply chain have been cut off.

    It rains all night long. It is reported from the industry that TSMC has encountered another scheduled major customer of the 3nm process temporarily canceling the order, which has led to a significant reduction in the monthly production capacity of the 3nm process that it will mass produce recently compared with the original plan, which is only about 10000 pieces. The monthly production capacity of the 3nm process will increase significantly until the N3E process is mass produced in the second half of next year, which also affects the performance momentum of the related supply chain, and even the orders it sends out will be cut by 40% to 50% compared with the plan at the beginning of the year.

    In general, TSMC announced at its financial report meeting a few days ago that it would reduce its annual capital expenditure from $40 billion to $36 billion. A few days ago, CEO Wei Zhejia sent an internal letter encouraging everyone to take a vacation. Only 3nm process employees can not take a vacation at will. This is the latest technology that TSMC is about to mass produce. However, 3nm orders are now hard to guarantee.

    Previously, the first generation of 3nm process N3 was cancelled because of its high cost and few customers. The second generation of N3E process was mainly used in mass production, which is more cost-effective. Apple, AMD, NVIDIA, even Intel and other companies need to use it. Now, there is news that a customer has temporarily and urgently cancelled the 3nm order.

    The customer is not sure who it is, but no matter which customer cancels the 3nm order, it is a blow to TSMC now. After all, the 3nm process cost 20 billion dollars to build, and it is difficult to recover the investment without customers.

    However, as for the relevant 3nm rumors, as of the time before the press release, TSMC has failed to respond. TSMC previously mentioned that 3nm will be mass produced in the fourth quarter of this year. It is expected that the mass production will be stable in 2023 driven by high-speed computing and smart phone applications, but TSMC did not disclose the details of 3nm monthly capacity.

    The industry believes that TSMC‘s capital expenditure will be revised down by 10% this year, and it is reported that the Advanced Manufacturing Process Cooperation Factory has been cut down by 40% to 50%, which should be a few cases, mainly in the fields of renewable wafers, key consumables, equipment, etc.

    At present, Zhongsha, a renewable wafer factory, is regarded as an indicator beneficiary of TSMC‘s development of the 3nm process. However, Zhongsha does not comment on any customer orders, but only indicates that the overall supply chain is affected by the market conditions. However, the company will still strive to deepen its technology and maintain its dominant market position.

    On the other hand, after encouraging employees to take vacations, TSMC, the world‘s leading semiconductor manufacturer, promised to continue to invest in Taiwan, China Province. Following the Zhuke 2 Nanometer Factory, it is understood that TSMC will launch a pilot plan. It is expected that the latest process of less than 2 nanometers (1 nanometers) will be located in the Taoyuan Longtan Park under the jurisdiction of the Hsinchu Science Park, which also represents that the "National Science and Technology Council" will launch the third phase of the Longtan Park reporting process next year to expand the semiconductor cluster in the north.

    The slowdown of the global economy and the risk of economic downturn have made every move of large technology plants be magnified and examined. TSMC was concerned about encouraging employees to take normal vacations a few days ago. It issued a statement late at night to emphasize normal operations, and 2023 will still be a growth year, while promising to continue to invest in Taiwan, China Province of China. After the second phase expansion of Zhuke Baoshan passed the EIA last year, the TSMC 2 Nanometer Plant has started land preparation in the third quarter of this year, and the location of the next generation of plants has become the focus of attention.

    Moreover, the latest news shows that TSMC‘s 12 inch wafer factory in Arizona, the United States, will hold the "first machine transfer" ceremony next month. TSMC‘s supply chain points out that TSMC‘s U.S. factory will cut into 3 nanometers in the future. It is estimated that the monthly output will increase to 40000 pieces in 2026, and the mixed production mode of 5 nanometers and 2 nanometers will be adopted. This mode will be first operated in Plant 18B in the second half of 2023.