AMD, Intel, and Nvidia Reportedly Slash Orders with TSMC

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Being the world’s No. 1 foundry, TSMC was almost immune to the softening high-tech market in Q2 and Q3, but it looks like the party is over even for the world’s largest contract chip manufacturer. TSMC’s leading customers began to revise their orders to the company, affecting the foundry’s results starting from the fourth quarter of 2022, reports DigiTimes

According to the report, virtually all TSMC clients will experience a downturn and have to cut orders, so TSMC’s utilization will decline significantly in Q1 2023. For example, the utilization rate of TSMC’s N7-capable lines (7nm, 6nm-class technologies) will decline to around 50% in early 2023. Furthermore, even TSMC’s N5/N4-capable lines will be underutilized, though this may not come as a surprise since these are used to make leading-edge products, like Apple’s smartphone SoCs, and demand for advanced handsets is usually down in the first half of the year. More alarming is that even N28-capable fabs — which have been fully loaded since the beginning of the chip deficit in early 2021 — will be underutilized. 

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