The decline in chip demand that began in the second half of last year has affected several manufacturers in the chip sector’s supply chain. However, Taiwan Semiconductor Manufacturing Company (TSMC) has received news that its capacity utilization rate is starting to recover after two consecutive quarters of declining revenues. Recent reports from the media, citing sources from fab tool manufacturers, indicate that TSMC’s capacity utilization rate, particularly for its advanced process technology of 7nm and below, will significantly increase in the latter half of this year.
It is worth noting that starting from the fourth quarter of 2020, the revenue generated by TSMC’s 7nm and below process technology has become the main source of income, accounting for 49% of the current quarter’s revenue and surpassing 50% in subsequent quarters. The substantial increase in capacity utilization for the 7nm and below process technology, driven by higher foundry prices, will result in a significant revenue boost for TSMC.
The surge in TSMC’s utilization of the 7nm and below process technology can be attributed to Apple’s orders and the shift of other major customers towards more advanced process technologies. According to reports in foreign media, the two Pro versions of the iPhone 15 series, set to be launched this fall, will be equipped with the A17 bionic chip manufactured using TSMC’s 3nm process technology. TSMC’s 4nm and 5nm process technologies will also be utilized to meet the customers’ needs.
TSMC has entered a promising period of recovery in capacity utilization following the decline in chip demand. The substantial increase in the utilization of TSMC’s 7nm and below process technology, driven by Apple’s orders and the transition of major customers to more advanced process technologies, is expected to contribute to a significant revenue growth. TSMC’s future success will be shaped by its focus on technological innovations and its continuous offering of advanced process technologies to meet customer demands.