TSMC has received urgent orders for AI chips, and the 7nm production capacity utilization rate Q4 will be restored to 70-80%
According to the Science and Technology News, industry insiders have revealed that TSMC's Fab 15B factory in Taichung City has recently received urgent orders for AI related chips. Previously, EUV lithography machines with "Warm off" have been gradually reopened this quarter, indicating that the utilization rate of 7nm production capacity is expected to recover to 70-80% in the fourth quarter.
The state of "hot shutdown" is similar to shutting down but without power outage, referring to the action of wafer foundries choosing to shut down a portion of idle production capacity due to reduced demand. Due to the fact that the equipment will not be maintained during this period, it is necessary to conduct inspection and debugging according to the process before resuming production, rather than using it as needed.
Industry insiders say that with the influx of urgent orders for AI related chips, the EUV machines at the Fab 15B factory in TSMC Radio are expected to resume production at the end of this quarter and return to 70% to 80% by the end of the year. According to Taiwanese media, TSMC's operations have been put to the test since 2023, with sluggish demand for 7nm production capacity, which accounts for 20-30% of revenue, being one of the main factors. In the first half of the year, the utilization rate of production capacity once dropped to 40%, and recently recovered to 50%. It is expected that after the idle EUV lithography machine is put into use, the 7nm production capacity will recover to 70-80%.
As of press release, TSMC has not commented on external rumors.
Although there have been rumors that TSMC may lower its full year outlook, TSMC has also issued a rebuttal, stating that the company still maintains the business outlook announced on July 20th, which is to reduce revenue in US dollars by 10% in 2023.
At present, TSMC's 5nm production capacity is tight, while its 3nm production capacity is fully loaded. With the increase of 7nm production capacity, it is expected that TSMC's annual revenue forecast will not undergo significant changes.
Industry insiders say that with the influx of urgent orders for AI related chips, the EUV machines at the Fab 15B factory in TSMC Radio are expected to resume production at the end of this quarter and return to 70% to 80% by the end of the year. According to Taiwanese media, TSMC's operations have been put to the test since 2023, with sluggish demand for 7nm production capacity, which accounts for 20-30% of revenue, being one of the main factors. In the first half of the year, the utilization rate of production capacity once dropped to 40%, and recently recovered to 50%. It is expected that after the idle EUV lithography machine is put into use, the 7nm production capacity will recover to 70-80%.
As of press release, TSMC has not commented on external rumors.
Although there have been rumors that TSMC may lower its full year outlook, TSMC has also issued a rebuttal, stating that the company still maintains the business outlook announced on July 20th, which is to reduce revenue in US dollars by 10% in 2023.
At present, TSMC's 5nm production capacity is tight, while its 3nm production capacity is fully loaded. With the increase of 7nm production capacity, it is expected that TSMC's annual revenue forecast will not undergo significant changes.