TSMC to Drive Global Wafer Foundry Business Growth in 2023: TrendForce

TAIPEI, Oct. 22 (CNA) Taiwan Semiconductor Manufacturing Co., the world’s largest contract chip manufacturer, will become the world’s largest expected to drive growth in the specialized wafer foundry industry.

At a tech forum held by TrendForce earlier this week, Joanne Chiao, a senior semiconductor analyst at the advisory firm, said TSMC is expected to benefit from its efforts to develop an advanced 3-nanometer process. said. Production later this year. Chips manufactured using this process demand higher profit margins.

Chao said the global specialty wafer foundry industry is destocking due to weakening demand, but TSMC is expected to weather the headwinds on the back of rising product prices, and the 3nm process is expected to take the market by storm. expected to contribute. Chip his maker sales in 2023, the Taiwanese maker is estimated to see his 7-9% revenue increase from 2022.

Trials of the 3nm process began last year, and the 5nm process is the latest technology TSMC has entered into mass production, accounting for 21% of the chipmaker’s total revenue in the second quarter of this year. The upgraded version, known as 3nm Enhanced (N3E), is expected to enter commercial production within a year.

According to the chipmaker, TSMC’s 3nm family uses FinField-effect-transistor (FinFET) technology. This 3D transistor structure allows the chip to run faster using the same amount of power, or run at the same speed using less power.

The global wafer foundry industry is expected to grow around 2.7% in 2023 on the back of TSMC’s growth, but is expected to moderate from the 28% y/y growth in 2022 when wafer foundry operators enjoyed strong growth. increase. This is due to emerging technologies such as 5G applications and demand earlier this year due to COVID-19 and geopolitical tensions.

According to Chiao, the global wafer foundry industry has reached a cyclical peak since 2020, with revenue growing 24% year-over-year and reaching 26.1% year-over-year growth in 2021. .

The current weakness in demand in the global wafer foundry business is a result of rapid global inflation and China’s zero-tolerance COVID-19 policy, while China’s There are US sanctions on the export of ICs and related production equipment to Zhao said it is expected to have a negative impact on the global semiconductor industry.

While many countries are pursuing projects to build their own wafer fabs, Taiwan’s lead in advanced process development will ensure it continues to dominate the global market, Chiao said.

However, as more and more wafer fabs deploy chips, increased supply is expected to present new challenges for semiconductor manufacturers.

At the same forum, TrendForce Research Operations Center COO HP Chang said he remained cautious about the business outlook for the global manufacturing sector in 2023.

Inflation in the US and Europe shows no signs of coming under control anytime soon, and China’s economy is slowing amid the COVID-19 pandemic, adding uncertainty to the global economy, Chang said. TSMC to Drive Global Wafer Foundry Business Growth in 2023: TrendForce

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