Capacity utilization of TSMC is expected to drop to 80% in the first half of next year. 5nm / 7nm will decline.

According to news on December 12, according to foreign media reports, driven by strong demand for home office and learning equipment and strong demand for chips, the production capacity of Wafer Industrial and Commercial TSMC has been tight since the first half of 2020, capacity utilization has been high for a long time, revenue has continuously reached new highs, and quarterly revenue has exceeded that of chip giant Intel for two consecutive quarters.

But after years of tight capacity and rapid growth, TSMC's capacity utilization may also be tested next year, when it has been reported that it will decline.

According to the report, the overall capacity utilization of TSMC is expected to drop to 80% in the first half of next year. 7nm and 6nm processes will have the largest decline in capacity utilization, while capacity utilization of 5nm and 4nm processes is expected to decline from January next year.

It is worth noting that 7nm, 6nm, 5nm and 4nm process processes account for more than 50% of TSMC's revenue in recent quarters, which is their main source of revenue. The decline in capacity utilization of these four advanced process processes will affect their revenue and affect their profits.

As TSMC is currently the largest foundry in the world, with a large customer base and a much higher market share than other manufacturers, if their capacity utilization declines, it will most likely mean that other manufacturers will not be optimistic.

Last week, foreign media reported that after entering the fourth quarter, the capacity utilization of a number of South Korean wafer foundry declined sharply, and is expected to decline even more in the first half of next year.