Two major customers cut orders sharply! TSMC's 5/4nm production capacity utilization rate dropped to 70% in the first quarter

According to industry sources, TSMC’s 5/4nm process node capacity utilization rate will drop from 90% to 70% in the first quarter of 2023 due to reduced orders from Apple and AMD.

According to Taiwan media Electronic Times, sources said that Apple has reduced chip orders for its new iPhone and MacBook series in preparation for weak market demand in the first quarter.

"In particular, the sharp cut in MacBook chip orders, Apple is expected to cut its MacBook orders by more than 40% in 2023," the source said.

Separately, sluggish PC demand prompted AMD to lower its notebook and desktop processor orders for 2023. AMD continues to contract with TSMC to manufacture its 5/4nm and 7/6nm chips, but has cut orders with the foundry by 20-30% in the first quarter, the sources said.

It is reported that TSMC will hold a law conference on the afternoon of January 12. The market is highly concerned about TSMC’s capital expenditure this year, this season’s operations, utilization rate, the progress of overseas (US, Germany and Japan) factories, and when the semiconductor boom will bottom out. and other topics. The majority of legal persons expect that TSMC in 2023 will show a trend of "high at the beginning and low at the end". As the impact of supply chain inventory adjustments expands, including the synchronous slowdown in demand for 5nm and mature manufacturing processes, TSMC’s performance in the first half of the year is likely to decline quarter by quarter; among them, Q1 revenue will decrease by about 10% quarterly, and its performance in the second half of the year is expected to stop falling and rebound.