What’s good for TSMC. . . . .

Morris Chang, Chairman of TSMC

Morris Chang, Chairman of TSMC

A fully-booked TSMC means a chip industry with orders and a systems industry with confidence, says David Manners, because TSMC is the IC industry’s bellwether and the health of the chip industry reflects the health of the worldwide electronics industry.

It’s good to hear that TSMC is booked out, not because one wants Morris Chang’s pension pot to be a bit bigger, but because TSMC is the IC industry’s bellwether and the health of the chip industry reflects the health of the worldwide electronics industry.

A fully-booked TSMC means a chip industry with orders and a systems industry with confidence.

According to Digitimes, TSMC is booked out till Q4 thanks to orders for handset and PC chips topped up by short lead-time orders coming from the consumer companies.

The result is that the 8″ fabs are running at 100% utilisation and the 12″ fabs are running at 90%+ utilisation.

There are three massive pieces of good news for TSMC:

1. Phones have more chip types – chips for NFC, fingerprint recognition and wireless charging – pushing up TSMC’s revenues.

2. Chips will have more cores – pushing up prices.

3. More chips will be 4G – also pushing up prices.

So, TSMC’s take-per-handset will go up from $8 now to $10 soon, and the take-per-tablet will go up from $3/4 to $5.

Tags: semiconductor industry, TSMC, utilisation

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