TSMC is optimistic about the strong demand for 28nm for automotive chips and digital transformation, and plans to revise the 28nm expansion plan of the Nanjing plant from 40, 000 pieces per month to 100000 pieces, an increase of 1.5 times, which is the largest expansion in the mature process in the past seven years.
The report believes that TSMC's strategy adjustment shows that after TSMC's international customers such as Chaowei and Huida have made TSMC shine in high-efficiency computing chips, automotive chips will become the next major momentum to boost TSMC's revenue growth.
In fact, in an earnings call held in the middle of this month, TSMC said that the supply of automotive chips was expected to pick up sharply in the coming weeks and that the chip shortage that plagued the global auto industry may have passed its worst phase.
TSMC said that the company's MCU (microcontroller, mainly used in cars) production increased by 30% in the first six months of this year compared with the same period last year, and the company will increase MCU production by nearly 60% this year. TSMC CEO Wei Zhijia said that through MCU production measures, it is expected that the shortage of car chips for company customers will be greatly alleviated from this quarter. But a broader shortage of semiconductors is likely to last until 2022.
In addition, TSMC said at the time that in order to boost customer confidence in the security of its long-term supply, TSMC said it was prepared to continue to invest in the mature chip production technology on which automotive chip production depends. The company is expanding factory capacity in Nanjing and other places to further increase the production of automotive semiconductor chips. The company is still in talks about building a new factory in Japan.
