Taiwan Semiconductor Manufacturing Co (TSMC, 台積電 ) yesterday said it is postponing the construction of a new fab in Kaohsiung for the production of 7-nanometer (nm) chips in response to weak demand, but the world’s biggest contract chipmaker reiterated its commitment to continue investing in advanced technology in Taiwan.
TSMC chief executive officer C.C. Wei (魏哲家) made the announcement at an Industrial Technology Research Institute (工研院) event in Hsinchu yesterday, after recent speculation about the company’s capacity expansion plan in Kaohsiung.
Last month, Wei told investors that TSMC had initially planned to build two factories to make 7-nanometer and 28-nanometer wafers in the new Nanzih Technology Industrial Park in Kaohsiung.
Photo: Tyrone Siu, REUTERS
With the semiconductor industry entering an inventory correction cycle, TSMC has “adjusted” the fab for the 7-nanometer factory due to weak demand for chips used in smartphones and computers, Wei said.
In the fourth quarter of this year, the capacity utilization of 7-nanometer and 6-nanometer chips would not be as high as it had been in the past three years, he said.
However, the plan to build the 28-nanometer fab would proceed on schedule and could even be expanded, he said.
The chipmaker has yet to break ground on either project. A groundbreaking ceremony for the park was held in August. The park is on a site where state-owned oil company CPC Corp, Taiwan (中油), used to operate a naphtha cracker.
To build a resilient supply chain, TSMC is building capacity in the US and Japan. The Wall Street Journal reported on Thursday that TSMC aimed to build a second chipmaking plant in Arizona.
TSMC said it is evaluating the possibility of the expansion plan, but nothing is substantial yet.
Hon Hai Precision Industry Co (鴻海精密) yesterday said that its research institute has launched its first advanced artificial intelligence (AI) large language model (LLM) using traditional Chinese, with technology assistance from Nvidia Corp. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), said the LLM, FoxBrain, is expected to improve its data analysis capabilities for smart manufacturing, and electric vehicle and smart city development. An LLM is a type of AI trained on vast amounts of text data and uses deep learning techniques, particularly neural networks, to process and generate language. They are essential for building and improving AI-powered servers. Nvidia provided assistance
DOMESTIC SUPPLY: The probe comes as Donald Trump has called for the repeal of the US$52.7 billion CHIPS and Science Act, which the US Congress passed in 2022 The Office of the US Trade Representative is to hold a hearing tomorrow into older Chinese-made “legacy” semiconductors that could heap more US tariffs on chips from China that power everyday goods from cars to washing machines to telecoms equipment. The probe, which began during former US president Joe Biden’s tenure in December last year, aims to protect US and other semiconductor producers from China’s massive state-driven buildup of domestic chip supply. A 50 percent US tariff on Chinese semiconductors began on Jan. 1. Legacy chips use older manufacturing processes introduced more than a decade ago and are often far simpler than
STILL HOPEFUL: Delayed payment of NT$5.35 billion from an Indian server client sent its earnings plunging last year, but the firm expects a gradual pickup ahead Asustek Computer Inc (華碩), the world’s No. 5 PC vendor, yesterday reported an 87 percent slump in net profit for last year, dragged by a massive overdue payment from an Indian cloud service provider. The Indian customer has delayed payment totaling NT$5.35 billion (US$162.7 million), Asustek chief financial officer Nick Wu (吳長榮) told an online earnings conference. Asustek shipped servers to India between April and June last year. The customer told Asustek that it is launching multiple fundraising projects and expected to repay the debt in the short term, Wu said. The Indian customer accounted for less than 10 percent to Asustek’s
Gasoline and diesel prices this week are to decrease NT$0.5 and NT$1 per liter respectively as international crude prices continued to fall last week, CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. Effective today, gasoline prices at CPC and Formosa stations are to decrease to NT$29.2, NT$30.7 and NT$32.7 per liter for 92, 95 and 98-octane unleaded gasoline respectively, while premium diesel is to cost NT$27.9 per liter at CPC stations and NT$27.7 at Formosa pumps, the companies said in separate statements. Global crude oil prices dropped last week after the eight OPEC+ members said they would
RSS