With the continuous advancement and development of high-tech fields such as artificial intelligence, cloud computing and 5G, chips are becoming more and more important as a core component of these technologies. However, now the global chip market is facing an unprecedented situation, that is, overcapacity.
According to reports, in recent years, many chip manufacturers around the world have increased investment and expanded production scale, resulting in an increasingly serious problem of chip overcapacity. At the same time, market demand has not grown as rapidly as production growth, resulting in a fall in chip prices and a 20% reduction in mature processes, which has also put many chipmakers under pressure.
Among them, TSMC is one of the representative enterprises of the global chip manufacturing industry and the world's largest wafer foundry. However, due to the problem of overcapacity of chips, TSMC recently announced that it will shut down 4 EUV lithography machines to cope with the situation of overcapacity. This decision undoubtedly caused a huge shock in the market.
It is understood that EUV lithography machine is currently the most advanced chip manufacturing equipment, with high precision, high efficiency, high stability and other characteristics. TSMC uses this equipment to produce high-quality chips, and the number of EUV lithography machines is in a leading position in the world. However, the problem of overcapacity forced TSMC to shut down some equipment to adapt to changes in market demand.
In addition, the construction of chip production lines is also affected by the problem of overcapacity. In recent years, in order to meet market demand and expand market share, many chipmakers have invested in the construction of new production lines. However, due to changes in market demand and price reductions in mature processes, these new production lines are facing difficulties such as idle capacity and losses.
However, although the current problem of chip overcapacity has brought difficulties and pressure to the market, industry insiders generally believe that this is actually a normal market adjustment process. With the improvement of technology level and changes in market demand, chip manufacturers continue to adjust their capacity scale and production strategy to maintain their competitiveness and market position.
On the other hand, the price reduction of mature processes also brings benefits to consumers. The decline in chip prices means that chips will become more popular, and people can buy high-performance electronic devices cheaper, which has a positive effect on promoting the development of digital technology and intelligent industries.
In short, the current global chip market is facing the problem of overcapacity, which not only brings challenges and tests to chip manufacturers, but also plunges the entire market into a state of volatility and uncertainty. However, we believe that this is only a process of market adjustment, and the chip market will remain stable in the future.
According to Taiwanese media reports, chip production capacity has really been excessive. The report pointed out that with the steady growth of the global smartphone, tablet and data center market, the chip industry has entered an era of overcapacity, the current mature process price reduction of 20%, TSMC also announced that it will shut down 4 EUV lithography machines to reduce production capacity and reduce costs.
First, let's take a look at the current situation. According to reports, the global chip market has entered a state of oversupply. Especially in the mobile device market, due to the rapid increase in the popularity of smartphones and tablets, the market demand is gradually saturated, and the phenomenon of overcapacity is gradually emerging. This has led to manufacturers manufacturing chips in large quantities, and the actual demand in the market has not increased accordingly, so overcapacity has now become one of the biggest problems facing the chip industry.
Secondly, there is the problem of price reduction of mature processes. At present, the mature process in the chip industry has become mature, which makes the competition in this field more and more fierce. In order to gain more share in the market, companies continue to introduce better products and services, and reduce product prices. It is reported that the current mature process has reduced the price by 20%, which is undoubtedly an important change for the chip industry, because it will not only bring about cost changes, but also make the chip price decrease, thereby further stimulating market demand.
In addition, TSMC's decision to announce the closure of 4 EUV lithography machines also indicates the phenomenon of chip overcapacity. EUV lithography machine is one of the key equipment for the production of chips, which can manufacture chips with highly complex structures. However, with the emergence of overcapacity, TSMC decided to shut down 4 EUV lithography machines to cut production capacity and reduce costs. This decision is a wake-up call for the entire chip industry, as it shows that the increasing maturity of existing technologies has led to overcapacity, and chipmakers need to find new technologies to meet the needs of the future market.
In short, chip production capacity has really been overgrown and has become one of the major problems faced by the chip industry. In this context, chipmakers need to seek innovative solutions to meet the needs of the future market. As existing technologies mature, chipmakers can continue to introduce better products and services and reduce product prices to increase market share. At the same time, they should also look for new technologies to drive the entire industry. In this way, we can ensure that the chip industry can develop stably for a long time.