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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!

zhiwo

By zhiwo

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helpmekim
6 months ago

This script is very common. When a certain technology is not available in China, foreign companies can sell products at high prices. After a Chinese company has invested huge R&D expenses and a large number of researchers to do it, the foreign company has already recovered the R&D costs and started to lower the price. Price dumping. It is difficult for Chinese companies to recover R&D costs through products, and then profits are low, wages cannot be increased, subsequent R&D expenses remain difficult, R&D personnel are lost, and further R&D plans are aborted.

heloword
6 months ago

1. It is not necessarily the reason for the lack of water and electricity in Taiwan. As the “sacred mountain of national protection” of the “Taiwan Consensus”, even if the Taiwan Radio Water Company cuts off all the domestic electricity and water in Taiwan, it will guarantee the production of TSMC. need. In the first two weeks, the excavation of the cables in the park caused the TSMC factory to jump out of electricity, which caused TSMC to lose 1 billion in 5 minutes. If a large-scale energy crisis causes TSMC to have an accident, there is a chance that the rabbit brand rocket will hit the head. Hahahahahahaha …But 5nm has been verified that it will consume 15% to 20% more energy than 7nm (DPP Guo Guangtou said, no source of the original data), not to mention the following 3nm and 2nm. The existing park energy network may not be able to carry it. If it must go on, it is only natural to transfer part of the low-end production capacity. 2. The expansion of TSMC’s Nanjing plant should be mostly for automotive chips. Last year, the car chip shortage that lasted until this year has already passed the stage of sparks. If TSMC is still the main force in consumer electronics chips and does not adjust its production capacity to make car chips, it will be in China, the world’s largest car consumer. SMIC has eaten the market of German, American, and Japanese car companies, and it is not so simple to grab it back. What’s more, it is a fact that, as various auto companies that have considerable influence in the political circles of Europe, America and Japan, it is also a fact to exert political pressure on Taiwan through their own spokespersons. Otherwise, as the largest shareholder of the United States, Taiwan’s “Executive Yuan” is the most factual. The “quasi-state-owned enterprise” TSMC shareholders meeting of influential shareholders is unlikely to make this investment case possible, and no one can use any of their money to expand production. 3. It will definitely have an impact on SMIC, it will also have an impact on UMC, and it will have an impact on all non-TSMC semiconductor companies in the mainland. There will be both good and bad effects. I think other non-TSMC companies still have to improve their yield first. TSMC’s ability to compete in this industry is based on the high yield of the mature process. The high yield is the endorsement of the product cost and delivery time. If SMIC can achieve the industry’s first yield rate, with the demographic bonus of the mainland’s economic development, it will be easy to kick TSMC from the altar in the mature process. Moreover, the research and development of processes below N5 can also be supported by a large amount of operating funds, which is a virtuous circle. And not like some companies, the foundation is not well established, the 28 is not clear, or the yield rate is in a mess, and the red-necked shouting to go to 7 or even 5 R&D, leaving the yield rate of the mature process to talk about the development of new technology is all Playing rogue, where does the accumulation of technology come from? Where does the money come from? What about a liar? 4. Don’t worry about TSMC’s 5nm plant in the United States too much, because too many people have analyzed it. Don’t say whether the promised land, energy, taxes, and manpower can keep up, just say that SAMSUNG, who followed him to set up a factory in Arizona, will give him good fruit? INTEL was asked by the reporter: You are going to set up a high-end chip factory that you have not yet mastered the technology or are completely unfamiliar. When you are not worried about how to get so many talents, the person in charge of INTEL smiles. I almost scolded the reporter for an idiot. Who does not know in the industry, where does INTEL have so many 5nm talents? Next to it is TSMC, go grab it!

helpyme
6 months ago

This trick is really destructive:
1. Borrow U.S. dollars from the mainland bank and use the production capacity of the Nanjing factory to repay;
2. Expand the production capacity of low-end and mid-end lines to suppress SMIC, the only one in mainland China that can handle it;
3. Finally, I used the money to build the latest foundry in the United States, and traded the certificate to the American father.
TSMC also has an expert, cash in disguise, asset transfer, play a slip,
The domestic chip industry situation is still very dangerous

sina156
6 months ago

Taiwan’s political theory shows are stupid, but it does not mean that Taiwanese, especially smart businessmen, are stupid. This is a bad excuse for lack of water and electricity, let’s save it. TSMC’s abacus is actually very simple. It uses our money to squeeze the living space of our company. It’s just this matter, it may not be impossible to do it. First of all, this is debt. Borrowing money in the cycle of a major release of the US dollar, when the Fed raises interest rates to harvest, may not be so good. Secondly, TSMC still has certain technical advantages after all. In line with our need to introduce advanced technology.

yahoo898
6 months ago

There is actually no impact on the 28nm line produced nationwide. Because TSMC’s Nanjing plant must abide by the US ban, it has no way to meet the needs of sanctioned companies such as Huawei and domestic military industry. At the same time, for the 28nm line produced nationwide, the above-mentioned projects that TSMC cannot connect to have been enough for it to support it for a while. For TSMC and Nanjing, business is business, but it is just business.

leexin
6 months ago

I heard that TSMC has just passed a resolution to double the capacity of its 28nm plant in Nanjing to ease the current chip panic. I don’t know what everyone thinks about this issue? From the point of view of disadvantages, 28nm is not an advanced process of TSMC, nor is it a process that cannot be mass-produced in the mainland, and it does not bring us too much experience. On the contrary, TSMC’s unusually mature 28nm will affect the orders of domestic 28nm fabs due to its low cost and will be affected by the price war. From the profit point of view, this obviously stimulated the economy, promoted employment development, and strengthened TSMC and the world’s dependence on the mainland semiconductor industry. It also provides the mainland with a pool of talents in related fields, which is better than nothing. My personal opinion is optimistic. Now 28nm is indeed not too advanced technology. It hasn’t reached FinFet yet, and it hasn’t played a role in suppressing the development of domestic advanced technology. SMIC is N+1 fast, introducing large-scale 12nm and The above is the problem. More is still income. Now 28nm production capacity is also in short supply, and the extra production capacity is unlikely to impact SMIC.

greatword
6 months ago

TSMC has only set up low-end processes in China, while in the United States, it has set up high-end processes.
If you want to build a factory, you will move all the manufacturing processes in. Only enjoy preferential policies in China to create a lot of pollution and consume huge amounts of hydropower to set up low-end manufacturing processes, but below 5nm is released in the United States. TSMC, what do you mean by tnnd?
Still low-end production capacity? For us, this is a proper high-end production capacity. What is the share of our own 28NM? The problem now is that the domestic production capacity is too small, no matter where it is, as long as you come to build a factory, the more the better.

loveyou
6 months ago

On the surface: Taiwan lacks water and electricity, and TSMC moves low-end production capacity to the mainland. The game behind: The United States controls the most upstream resources and feels the chip crisis, so TSMC is asked to set up factories in the United States, saying that it is 5 nanometers. In fact, the last It is entirely possible that Taiwan must not produce products below 3 nanometers, and can only be produced in the United States. This is not the first time that the United States has done this. Japan’s semiconductor industry in the 1980s was also hit by similar methods and has since lost its leading position in the global chip field. The mainland is the largest market for Taiwan’s chips, and TSMC cannot completely ignore the attitude of the mainland. Both the US and Taiwan authorities restrict TSMC from transferring high-end production capacity to the mainland, but have not blocked low-end production capacity. Therefore, expanding the low-end production capacity in the mainland is an explanation to the mainland. Neither side should be guilty, and both sides earn money. The businessman, earning money is not shabby.

strongman
6 months ago

Come and feel the full power of Nanjing! Nanjing Power Grid currently has 310 substations of 35 kV and above, and the length of lines of 10 kV and above exceeds 40,000 kilometers. At present, it has formed a strong network of 500 kV “O” type double loops and 220 kV “three pieces of five loops” 架结构。 Frame structure. Nanjing Power Grid took the lead in achieving full coverage of distribution automation in the province, and built the world’s first dedicated wireless power network with full coverage of 1.8G frequency band. (State Grid Nanjing Company) According to statistics released by the National Energy Administration for the first half of 2020, Nanjing’s power supply reliability index ranks fourth in the country. On October 16, the National Development and Reform Commission issued the “China Business Environment Report 2020”, and Nanjing was awarded “benchmarks” in 12 areas including “access to electricity”. Not to mention the water, on the edge of the Yangtze River! (DL water is needed in the semiconductor production process) The embrace of mother is solid and warm! Another: Semiconductors, chips, not low-end manufacturing! Only for TSMC, it is the company’s non-core technology! Labor-intensive industries!

stockin
6 months ago

It has nothing to do with hydropower, mainly because TSMC’s Nanjing production capacity is not large. Looking at 2025 from afar, the domestic production capacity of at least 300,000 pieces of 12 inches needs to be expanded, and TSMC’s market share in the mainland’s local IC design field basically counts among others. If left unchecked, they will backtrack their own production capacity in Taiwan Province, so they have to expand production capacity and retain customers as a last resort.

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