According to the latest report, since the shortage of chips in the automotive, consumer electronics, and other fields at the beginning of last year, chip suppliers have had strong demand for wafer foundries, and the production capacity of foundries such as TSMC and UMC has increased. It is also fully utilized and the plant is running at full capacity.
However, the latest reports from the source show that as many chip manufacturers begin to cut orders, the capacity utilization rate of foundries such as TSMC will decline in the third quarter of this year and will not continue to operate at full capacity.
However, the sources also mentioned in the report that although the capacity utilization rate will decline in the third quarter, it will not drop significantly, and the capacity utilization rate will remain above 90%.
The decline in capacity utilization of foundries such as TSMC also means that the demand for some chips has begun to slow down to a certain extent, which will also affect their revenue.
If the capacity utilization rate of foundries such as TSMC is still lower than 100% after the third quarter of this year, after the new factory is put into operation, their capacity utilization rate will be further reduced.
At the end of last month, a source revealed that with the successful commissioning of new factories, the global wafer foundry capacity will reach its peak in 2024-2025, and the foundry capacity may be surplus by then, and TSMC will also have to reconsider the new capacity.
Overcapacity in the foundry field will not only affect the capacity utilization rate of foundries but may also affect foundry prices. In the case of overcapacity in the entire industry, manufacturers are bound to compete fiercely for customers’ orders, which will lead to price declines.