TSMC Ramps Up Q1 Capacity: 12-inch Fab Hits 80%

On January 17th, in a significant development reported by industry insiders, Taiwan Semiconductor Manufacturing Company (TSMC) is poised to witness a comprehensive increase in wafer fab capacity utilization during the first quarter of 2024.

According to reliable sources, TSMC's 8-inch and 12-inch wafer fabrication facilities have successfully restored utilization rates to 70-80% and 80%, respectively. Particularly noteworthy is the recovery of the 28-nanometer process utilization, now operating at a robust 80%. Additionally, the utilization rates for 7/6nm processes have rebounded to 75%, marking a substantial improvement compared to the previous year and a half, where it remained below 50%. The 5/4nm process capacity is nearly at full capacity, and the 3nm process utilization rate has exceeded 70% in January, with projections indicating a rise to 85% in the first quarter.

Despite earlier projections of a 23% decline in profits for the fourth quarter of 2023, analysts anticipate a positive growth trajectory for TSMC in the current year, fueled by a resurgence in demand. The profit dip underscores TSMC's resilient performance in 2022, driven by heightened demand post-pandemic, with prominent clients such as Apple and NVIDIA.

It is pertinent to mention that TSMC is scheduled to host an investor conference on Thursday, January 18th. Stakeholders and industry observers are keenly awaiting insights into the newly appointed board members post the retirement of Chairman Liu Deyin, advancements in packaging capacity, global expansion initiatives, demands for advanced processes, and the overall trajectory of the global semiconductor market. The forthcoming event is expected to serve as a pivotal reference point for industry trends.