Netcom chip factory upgraded to grab production capacity

Wafer foundry production capacity is in short supply, the industry came out, many Netcom chip index factories can not wait for the mature process capacity expansion, has changed the design first, upgraded to TSMC (2330) 6 nanometer process and large-scale package production capacity, Qualcomm, Broadcom and other major Netcom chip suppliers have greatly improved last year's shortage of goods and order congestion problems, with the increase in chip shipment styles, the trend led to the relevant WiFi wireless Netcom detection demand order explosion.

TSMC has never commented on single customer information, but TSMC President Wei Zhejia previously revealed at the legal conference that he has seen the trend of upgrading the process technology of chip customers related to signal transmission from 28 nanometers to 16 nanometers, and then to 6 nanometers.

Image source: Reuters

Brand industry pointed out that the previous part of the high-end router required chips by Qualcomm and Broadcom supply is tight, had to use other chip designs to launch a lite version, and now as the supply of related chip manufacturers has returned to normal, terminal Netcom product shipments have gradually returned to the right track and increment.

Industry insiders said that the previous wafer foundry mature process production capacity is tight, resulting in many Netcom chip factories shipments are not smooth, even if the wafer foundry actively expands production, but the new production capacity in place time is not urgent, prompting Netcom chip factories to change the chip design and upgrade the process in advance, most of the concentrated conversion to the 7 nanometer family of 6 nanometer process, pushing up TSMC 7 nano family order visibility continues to lengthen.

It is reported that when netcom chip-related customers packageDSMC's 6-nanometer production capacity, it has also obtained TSMC's commitment to supporting the supply of mature process production capacity around it, which is estimated to increase by 30% to 40% compared with last year, which can be said to be "counted in one fell swoop".

In terms of the changes in the supply and demand of mature processes in the wafer foundry market, Isaiah Research believes that the supply side will gradually open up due to the new production capacity of TSMC and UMC mature processes in the second half of this year, and it is still important to judge whether the supply of mature processes in the first half of this year is still in short supply, and it remains to be seen whether there will be a risk of excessive supply after 2023. On the demand side, it is estimated that TSMC's 22/28nm process will grow by more than 50% in the next four to five years.

In addition, Chen Yiping pointed out that under the still shortage of mature process production capacity, we currently see the application of terminal products adjusting with market supply and demand, for example, Samsung's ISP products in UMC may be partially converted to drive ICs to meet the market demand for OLED driver ICs.