The report quoted relevant sources as saying that due to the difficulty of building a new plant on the island of Taiwan, and the continued shortage of water and electricity infrastructure threatening normal production, TSMC had to reconsider the production capacity ratio of its plants on both sides of the strait. Therefore, it plans to convert some of its 12-inch plants. Moved its machinery and equipment to the Nanjing plant (Fab 16) in mainland China to expand the foundry capacity of the Nanjing plant below 28nm.
At present, TSMC’s Nanjing plant has a monthly production capacity of 20,000 12-inch wafers, with the main processes being 12nm and 16nm. The outside world estimates that TSMC will move about 20,000 pieces of equipment. After the production line layout is completed, it is equivalent to doubling the production capacity of the Nanjing plant.
Some analysts believe that the past quarter has experienced full capacity, but Taiwan has repeatedly reduced the water supply in the park due to water shortages. The Nanke plant has also cut out the cable due to the construction of the new plant and caused a power trip. TSMC can only maintain the existing Fab cautiously. Operation, this transfer of production capacity is really helpless.
This is not TSMC’s move of 20,000 production capacity to the mainland. As an independent legal person, TSMC’s Nanjing plant borrowed US$2.887 billion in Nanjing to seek to acquire the parent company’s 40,000 28nm process. To put it simply, TSMC’s Nanjing plant borrowed money from the bank and asked his mother, TSMC, bought 40,000 pieces of production capacity and moved to the Nanjing plant to increase its sales scale. On the one hand, TSMC has freed up a lot of space, on the other hand, it has also obtained a large amount of cash flow. At the same time, it uses the production capacity migration period to further suppress the current shortage of production capacity. This matter should be put together with Hua Hong’s 7th plant’s investment of 5.2 billion to increase the production capacity of 25,000 55nm process and the start-up of the integrated Fab N2. In the big environment, Nanjing needs more foundries to serve his design company. But at present, only TSMC can support his local core manufacturing. It is expected that after the migration, SMIC’s 28nm process segment business and some 55/40nm process segment businesses will be hit. At the same time, it will bring 1-1.5% of the added value of GDP for Nanjing. It is better to unify as soon as possible!