Major TSMC Customers Cancel 3nm Chip Orders while the company Settles on 1nm Plant Location
It's being reported this morning in Taiwan that TSMC was affected by the temporary cancellation of orders by 3nm customers, so it cut orders from supply chain partners. TSMC said that the progress of the 3nm process has not changed.
Media reports pointed out that TSMC’s 3nm major customers temporarily canceled orders, affecting TSMC’s 3nm production capacity. The monthly production capacity will be about 10,000 pieces, which is significantly lower than the original plan. It will also affect TSMC’s reduction in supply chain cooperation including recycled wafers and consumables. Partner orders, up to 40% to 50%.
TSMC emphasized that the progress of the 3nm process has not changed. As explained in the October corporate briefing, the 3nm process is in line with expectations and has a good yield rate, and will be mass-produced in the fourth quarter. Driven by high-performance computing and smartphone applications, stable mass production is expected in 2023. Source
Although the report didn't mention Apple as being one of the "major customers" that have cancelled 3nm orders, there's a good chance that Apple will want to keep costs down as the economy leans toward recession. Only time will tell if Apple's iPhone 15 will remain on the 4nm processor.
In a second report this morning, UDN reports that TSMC's 1nm fab is planning to settle in Taoyuan Longtan Park. In this regard, the Ministry of Economic Affairs stated that Taiwan's semiconductor industry is a complete settlement. After 40 years of cultivation, the ecosystem has more than 1,000 suppliers. It is the most suitable place for semiconductor development. TSMC's most advanced manufacturing process will also invest in Taiwan.
TSMC has stated that there are many considerations for the choice of the location of the 1nm factory. TSMC will continue to invest in advanced manufacturing processes in Taiwan, and will not rule out any possibility, and will continue to evaluate the suitable land for semiconductor construction in Taiwan.