TSMC vigorously expands production by 28nm

In the past week, TSMC announced several new plant plans, all of which involved 28nm, which has attracted much attention in the past year.
According to the special news report of Taiwan media, TSMC, the leading foundry of wafers, has officially decided to set up a factory in Kaohsiung and plans to build it at the former site of CNPC high refinery. It is expected to start construction in 2022 and start mass production in 2024. At that time, TSMC will drive south Taiwan to form a semiconductor "s" corridor and transform it into a new high-tech settlement. As for the Japanese investment case, TSMC also officially decided to set up a factory in Kumamoto. It is expected to produce in mass by the end of 2024, showing that TSMC's international position is becoming more and more important.
The land of CNPC high-tech refinery, covering an area of more than 200 hectares, will soon become the site selection of TSMC's Kaohsiung plant. According to TSMC's announcement on the 9th, the board of directors officially decided to set up a plant in Kaohsiung, which is expected to start construction in 2022, and mass produce 7 nm and 28 nm processes in 2024. After TSMC's arrival in the future, it will deepen the clustering effect of manufacturers in southern Taiwan. From Nanke, there are TSMC, liandian ASML, etc; All the way down to Luzhu in North Kaohsiung, there are Huabang power and qunchuang; At the end of the bridge are the sun, moonlight and national giants; High refinery and Nanzi processing zone have rimoonlight, Yingwei, Guangbao, etc; Then there are Dashe, Renwu and Daliao, and then there are the forest gardens and small ports that used to be industrial areas, which seem to form a semiconductor "s" corridor.
Zhou Guangchun, President of Taiwan processing and export Zone Power Association: "(TSMC) If you come here, there will be a lot of work, including the work of building a factory and the work of daily maintenance and transportation. This will certainly make our whole Kaohsiung really become a different industrial structure. Now we are also emphasizing the need for digital transformation and our industrial upgrading. These things are, I think it happens that he will become me We have a very important puzzle in Kaohsiung's industry. "
Zhou Guangchun, chairman of the Taiwan processing and export Zone Power Association, is optimistic that TSMC's establishment of a plant in Kaohsiung will accelerate the upgrading of the supply chain, and also hopes to drive the return of talents from southern Taiwan. In addition to Kaohsiung, TSMC also approved the Japanese investment case.
At the same time, TSMC, the leading foundry, announced that it would set up a factory in Kumamoto and officially released a message. The Japanese government said that for enterprises setting up factories in Japan, it would grant subsidies according to their needs and production requirements.
It is reported that TSMC will set up a subsidiary jasm in Kumamoto county. Initially, it will adopt 22 and 28 nm processes. The construction of a 12 inch new plant is expected to start in 2022. It will be mass produced by the end of 2024, with a monthly production capacity of 45000 pieces and provide 1500 jobs. Sony will invest US $500 million, about NT $13.86 billion, and obtain less than 20% equity. The establishment of TSMC Kumamoto plant will not only write a new chapter of deep cultivation in Japan, It also shows that TSMC's international position is becoming more and more important.
Not just water and electricity! The environmental impact assessment and talent acquisition of the company's stand in Kaohsiung may encounter a bottleneck
TSMC has just announced that it will set up a factory in Japan to cooperate with Sony semiconductor solutions. It also confirmed that it will set up a wafer factory producing 7 nm and 28 nm wafers at the former site of Kaohsiung Nanzi PetroChina refinery. Kaohsiung Mayor Chen Qimai not only welcomed it, but also said that Kaohsiung should become the most important semiconductor industry settlement. However, for TSMC to set up a plant in Kaohsiung, the legal person believes that hydropower and talents are still key issues. Even if the water supply is not a problem, it is not easy to pass the environmental impact assessment. In addition, the recruitment of talents from TSMC Nanke has been as far as Pingtung, and the recruitment of talents from Kaohsiung plant may also become a bottleneck.
It is understood that the former site covers an area of 238.49 hectares, of which 55.49 hectares will be used as a semiconductor material R & D center. It is expected to set up two 12 inch wafer factories, with a monthly production capacity of 45000 pieces at 7 / 6 nm in the first phase and 20000 pieces at 28 / 22 nm in the second phase. The soil remediation period will be completed from 2022 to 2023. The first phase will be mass produced in 2024 and the second phase will be completed after 2025.
For TSMC to set up a plant in Kaohsiung, Taixin investment consultant believes that hydropower and talents are still key issues. In the hydropower part, the equipment industry believes that the water supply of Gaoping river is large, and the water supply should not be a problem. However, the difficulty of passing the environmental impact assessment is not low, and the high-voltage power line will pass through residential areas, which may cause residents to rebound.
As for the talent part, since TSMC's recruitment for Nanke has gone as far as Pingtung, Kaohsiung factory recruitment may also become a bottleneck, and the surrounding manufacturers include rimoonlight, nxpi, Guoju, Jielin, Changke, yihuadian, Huatai, xingqin, etc.
However, in the fundamental part, TSMC's quotation rose, which helped alleviate the dilemma of chip material shortage. According to media reports, TSMC has informed several IC customers on August 24, 2021 that the advanced process has increased by 3-10%, and the mature process has increased by 15-20% (distinguished by 12 / 16nm). The price increase benefit is reflected from 4q21 as soon as possible, which is conducive to the overall ASP upward, and maintain the long-term target gross profit margin of 50%. In addition, compared with the wafer foundry industry liandian, the world's advanced, and Li Jidian, TSMC's previous price adjustment was small, and some process quotations were even lower than those of the industry. Taixin investment adviser believes that the price increase will help TSMC confirm the real needs of customers, effectively allocate production capacity and alleviate the dilemma of "short and long materials" in chip supply.
As for whether IC design companies can fully transfer in the future, it remains to be seen. Taixin investment consultant points out that since the second half of 2020, IC designers can transfer more costs to downstream customers due to booming demand and rising foundry prices. However, with the cooling demand for home work, it remains to be seen whether IC designers can fully transfer costs to customers in the future.
As for the operation of TSMC, according to the analysis of TSMC investment consultants, the revenue of TSMC in the third quarter of this year was 414.67 billion yuan, an all-time high, with a quarterly increase of 11.4% and an annual increase of 16.3%. It is located at the upper edge of the financial measurement range, mainly driven by the revenue growth of four application platforms such as smart phones, HPC, IOT and automotive electronics, and the revenue ratio below 7Nm reached 52%. In addition, TSMC is optimistic about the demand for advanced processes such as 5g and HPC, and announced an increase in the foundry price of wafers in 2022, with an increase of 3-10% for advanced processes and 15-20% for mature processes (distinguished by 12 / 16nm). The price increase benefit is reflected from 4q21 as soon as possible, which is conducive to the overall ASP upward and maintain the gross profit margin of the long-term target of 50%.
Previously on: TSMC Nanjing plant expands production by 28nm
In July, the China Economic and Trade Ministry of Taiwan Province passed the Nanjing plant expansion plan of TSMC today. The trial committee put forward 3 reasons for expanding the existing plant to 28 nm, strengthening the management of the entity plant and intellectual property rights, and promised to invest at least NT $1 trillion and 800 billion in the next 3 years.
TSMC said that the new 28nm production capacity planned to be expanded is expected to be gradually opened in the second half of 2022 and reach a monthly production scale of 40000 tablets by the middle of 2023.
The investment review meeting explained that there are three reasons for expanding production:
First, it does not involve increasing equity investment, using existing plants for capacity expansion, and using mature 28nm process.
Second, TSMC has proposed to strengthen IP protection measures such as physical plant area and information access, such as background investigation for new employees, permission for data access and e-mail delivery, etc., and the management of physical plant area is also quite strict.
Third, we will continue to take Taiwan as the main base and create high-quality jobs in Taiwan. In the next three years, we will invest 600 billion to 650 billion yuan a year on the island, with a total investment of 1.8 trillion to 1.95 trillion yuan in three years.

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