Market Changes Hit 7nm Demand, TSMC Reduces Capital Expenditure
November 10, 2022
According to Taiwan Media Economic Daily, TSMC held a legal meeting on the 13th. TSMC Chief Financial Officer Huang Renzhao mentioned that the capital expenditure in 2022 was originally said to be a low standard of US$40-44 billion, but now it has dropped to about US$36 billion, including the continued supply of supplies. Unsmooth interference and response to changes in market demand.If TSMC’s capital expenditure this year still meets the target, it will still be higher than last year’s $30.04 billion. Regarding the direction of capital expenditure in 2023, Huang Renzhao pointed out that the company is still cautiously looking at customer needs, but will ensure that it can support the long-term structural growth of customers .According to the report, TSMC President Wei Zhejia also mentioned that in 2023, TSMC’s target process product portfolio will continue to increase, and the capacity utilization rate in 2023 will continue to be maintained under the increase in value, and it will still be a year of growth, but TSMC’s N7 capacity utilization rate is due to the market. The short-term weakening of demand changes is mainly due to the fact that most of the customer needs for mobile phones and PCs use N6/N7-related adjustments, and inventory adjustments have occurred simultaneously.Wei Zhejia explained that the decline in demand, including the weak market, including smartphones and PCs, also affected the utilization rate of some N7 families. It is expected to drop slightly in the first quarter of next year, but it is expected to recover in the second quarter, mainly due to continuous close cooperation with customers to ensure follow-up. The application drives the continuous growth of N7/6 in the future.
