TSMC faces a larger than expected drop in demand for
Hardware

TSMC faces a larger than expected drop in demand for 7nm chips

TSMC management admitted at a quarterly event that demand for the company’s 6nm and 7nm contract manufacturing services was lower than projected three months ago. The situation will last until the middle of the year, and in the second half of the year demand will start to grow. In the future it is planned to transfer some of the special products to 7 nm technology and thus extend the life cycle of this technical process.

    Image source: TSMC

Image source: TSMC

CEO of CC Wei confessed: “Three months ago we assumed that capacity utilization would come from technology N6 and N7 will not be as high in the first half of 2023 as in the previous three years due to weak demand in the smartphone and PC markets and a delay in the release of client products. Since then, the demand in the smartphone and PC market has continued to decrease, and the process load N6 and N7 turned out to be lower than we expected three months ago.” The CEO added that this environment should continue in the first half of the year as it will take supply chains several quarters to get back to a healthier state. “We expect a more moderate increase in demand for our technical processes N6 and N7 in the second half of the year than previously planned”, – summed up the CEO of the company.

Regarding the prospects for further application of 7nm technology, CC Wei acknowledged that the combination of high performance and low power consumption of this process technology opens up good prospects even in the long term. Analog components made with 7nm technology can be combined “high functionality with low power consumption”, as he added. Wi-Fi controllers, where it is important to combine advanced functionality with low power consumption, can become an example for further applications of 7nm process technology. In the future, this will extend the life cycle of 7nm technology and ensure an acceptable load on specialized production lines, even if the demand for these lithographic standards temporarily falls in the medium term.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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