The news broke yesterday that TSMC had halted production on 28nm production in mid February for an undisclosed reason. SemiAccurate thought this strange as the only company that is admitting to problems with TSMC’s 28nm process is NVIDIA, but at least production was scheduled to restart by the end of March. Today from DigiTimes we hear a more positive story about not only the 28nm but also the 20nm process line as TSMC predicts that the demand for chips from their customers could go as high as 95% of their capacity. Perhaps because of the lack of pressure because of a currently well stocked channel they shut down the line to ensure no preventable problems would prevent them from meeting this high demand?
"Taiwan Semiconductor Manufacturing Company (TSMC) chairman and CEO Morris Chang has commented that development of 20nm and 28nm processes is progressing well. The market believes TSMC’s capacity utilization rate in second-quarter 2012 should be close to 95%.
Chang indicated that 28nm processes will likely contribute 10% of 2012 revenues.
Industry sources pointed out that TSMC’s capacity utilization of its 28nm and 45nm processes at its 12-inch wafer plant has not decreased and delivery usually takes 8-10 weeks.
Equipment makers also indicated that TSMC has been ordering equipment and installations will be completed in first-half 2012.
Industry sources added that other Taiwan-based IC design houses have been experiencing increasing orders. The market was pessimistic before the Lunar New Year holidays causing inventory levels to be low. This has induced the recent wave of increased orders."
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