Sources say TSMC's production capacity and orders have surged, signaling a recovery in the semiconductor industry

According to news from this site on October 25, TSMC’s capacity utilization rate is gradually recovering, and customer orders have also surged significantly, suggesting that the semiconductor industry has released a recovery signal. It is reported that TSMC’s 7/6nm production line utilization rate once dropped to 40%, but is currently recovering to 60%, and is expected to reach 70% by the end of this year; the 5/4nm utilization rate is 75-80%, and seasonal The incremental 3nm production capacity is approximately 80%.

#At the same time, TSMC’s customer orders have increased significantly, including Apple, MediaTek, Nvidia, AMD, Intel, Broadcom, Marvell and STMicroelectronics Semiconductor and other technology giants.

This site previously reported that AI chip customers such as AMD subsidiary Xilinx, Amazon, Cisco, Google, Microsoft, and Tesla have all accepted TSMC’s 2024 price increase plan.

Take Tesla as an example. They are building a supercomputer facility in Austin to accelerate the development of its autonomous driving system and expand Dojo’s computing power. Dojo’s core D1 is produced using TSMC’s 7nm process and advanced packaging technology. Based on this, Tesla is deepening its cooperation with TSMC and expects order volume to increase from about 5,000 pieces this year to 10,000 pieces next year.

In the context of the emerging AI wave, Nvidia is actively seeking additional production capacity. On October 19, Nvidia CEO Jensen Huang revealed in an interview that global demand for AI chips remains strong.

He met with TSMC CEO Wei Zhejia to discuss matters related to increasing production capacity. Nvidia is in the planning stages of next-generation chips designed for artificial intelligence infrastructure and is in discussions with partners such as Quanta and Asus. to formulate cooperation strategies.

Wei Zhejia said during TSMC’s third-quarter earnings conference call that in addition to strong artificial intelligence demand, demand for smartphones and personal computers is also rebounding. As for automotive electronics, demand is expected to be quite strong next year, benefiting from the continued growth of electric vehicles.

In response to industry concerns about smartphone growth, TSMC Chief Financial Officer Huang Renzhao pointed out that smartphone growth is still expected to be lower than the company's future growth rate, and high-performance computing (HPC) is expected to be the strongest growth. sector, making a significant contribution to growth in the coming years.

Related reading:

"TSMC's net profit in the third quarter is expected to decline by 30% year-on-year, and is expected to rebound strongly in 2024"

"TSMC's foundry quotations below 7nm will rise again in 2024 3-6%, NVIDIA, AMD, MediaTek, etc. are "willing to accept""

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