TSMC's Kaohsiung plant will adjust its plan due to slowing demand for 7nm, and 28nm will be carried out on schedule

On October 13, TSMC held a legal meeting to announce its third-quarter financial data and fourth-quarter outlook. Due to the slowdown in demand for the 7nm process, the 7nm process plan of TSMC's Kaohsiung plant will be slightly adjusted, while the 28nm process will proceed as scheduled.

At today's online corporate briefing, Wei Zhejia, president of TSMC, said that due to the weakening of terminal markets such as smartphones and personal computers, as well as the impact of delays in customer product schedules, the 7nm and 6nm capacity utilization rates are likely to decline, and may continue until 2023. first half.

Wei Zhejia said that because the semiconductor supply chain inventory will take several quarters to rebalance to a healthier level, it is expected that the demand for 7nm and 6nm will rebound in the second half of 2023, and TSMC has adjusted related capital expenditures accordingly.

TSMC's Kaohsiung plant originally planned to have two plants with 7nm and 28nm processes. Wei Zhejia said that the 28nm part will progress according to the schedule, and the 7nm aspect will be slightly adjusted.

The financial report shows that in the third quarter of this year, TSMC’s revenue was US$20.23 billion, with a gross profit margin of 60.4% and an operating net profit margin of 50.6%. During the reporting period, TSMC's 5nm shipments accounted for 28% of total wafer revenue; 7nm shipments accounted for 26%; 7nm and more advanced processes accounted for 54% of total wafer revenue.

TSMC expects revenue in the fourth quarter of this year to be about $19.9 billion to $20.7 billion, with an average of 0.4% quarter-on-quarter growth. Gross and net profit margins will remain high compared to the third quarter.