Report: Order downturn to leave TSMC with spare 7nm capacity

December 06, 2018 // By Peter Clarke
Leading foundry Taiwan Semiconductor Manufacturing Co. Ltd. (Hsinchu, Taiwan) is likely to have spare 7nm process manufacturing capacity in the first half of 2019 due to reduced orders from smartphone chip suppliers, according to a Commercial Times report.

Apple, HiSilicon, Qualcomm and others are cutting back orders at 7nm and as a result TSMC manufacturing capacity utilization at 7nm could be 80 to 90 percent during the six-month period, the report said

TSMC has said that 7nm production was responsible for 11 percent of wafer revenues in 3Q18 and is set to move up to 20 percent of sales in 4Q18. The 7nm node was expected to exceed 20 percent of TSMC sales in 2019, so even a modest fall could impact TSMC revenues in 2019 significantly.

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