Counterpoint: TSMC 7/6nm capacity utilization will decline by 1020%

CTOnews.com October 24 news, market research firm Counterpoint pointed out that TSMC recently confirmed that the inventory of 5G smartphone application processor (AP) and SoC is still being adjusted, while the inventory adjustment is likely to continue into next year.

Analysts pointed out that due to weak sales in the smartphone terminal market, before the demand for 5G orders for AP and SoC has not picked up, the utilization rate of TSMC's 7nm and 6nm capacity will probably fall to 80% and 90% in the next 2-3 quarters, until new orders, including WiFi and RF chips, and SSD-controlled IC, begin to increase.

CTOnews.com learned that TSMC's 7ax 6-nanometer node was its largest revenue component by the third quarter of 2022.

CTOnews.com has reported that there was also news that TSMC had "delayed mass production of 3nm chips for another three months". In response to this news, TSMC responded that the development of the 3nm process is in line with expectations, with a high yield and will be mass produced later in the fourth quarter.