SMC Capacity Utilization Is Expected To Fall To 80%,

TSMC capacity utilization in the first half of next year is expected to fall to 80%, 5nm/7nm will decline

According to foreign media reports, driven by strong demand for home office and learning equipment and strong demand for chips, contract wafer manufacturer TSMC's production capacity has been tight since the first half of 2020. The capacity utilization rate has been at a high for a long time, and the revenue has been hitting a new record. The quarterly revenue has exceeded chip giant Intel for two consecutive quarters.

But after years of tight capacity growth, TSMC's capacity utilization rate could also face a test next year, with reports already suggesting it will decline.

According to the report, TSMC's overall capacity utilization rate is expected to drop to 80% in the first half of next year, with 7nm and 6nm processes seeing the biggest decline in capacity utilization rate. 5nm and 4nm processes are also expected to decline from January next year.

It is worth noting that 7nm, 6nm, 5nm and 4nm processes account for more than 50% of TSMC's revenue in recent quarters, which is their main source of revenue. The decline in capacity utilization of these four advanced processes will affect their revenue and profits.

Since TSMC is currently the world's largest contract wafer manufacturer, with a large customer base and a much higher market share than other manufacturers, if their capacity utilization declines, there is a high probability that other manufacturers will not be optimistic.

Last week, foreign media also reported that after entering the fourth quarter, the capacity utilization rate of many South Korean contract wafer manufacturers fell sharply, and it is expected to drop more in the first half of next year.