Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chip manufacturer, has seen a significant surge in demand for its advanced process manufacturing capacity, according to Taiwanese media outlet Economic Daily News. This growth in demand has been attributed to increased orders from AI tech firm, Nvidia. The utilization rate for the 5-nanometer process has risen from 50% to 70% and 80%, while the 7-nanometer process has slowly increased from 30% to 50%. TSMC reported that both the 5nm and 7nm processes accounted for approximately 50% of its first-quarter revenue, making them crucial sources of income for the company. In May, TSMC announced revenues of NT$176.53 billion ($5.73 billion), marking a 19.4% increase from the previous month.
This news comes as a significant boost for TSMC, who was struggling with capacity utilization for its advanced process manufacturing facility earlier this year. With the latest surge in demand from Nvidia, TSMC is expected to increase its output and profit in the coming months.
It is worth noting that TSMC’s advanced process manufacturing capacity is crucial for the production of high-end computer chips and graphic cards. With the rise in demand for AI and machine learning applications, the global semiconductor industry is expected to grow at a steady rate in the coming years.
This development also showcases the market dominance of TSMC in the chip manufacturing industry. With its unparalleled experience in advanced process manufacturing, TSMC is positioned to grow its market share further in the future.
The surge in demand for TSMC’s advanced process manufacturing capacity is indicative of the industry’s growth and highlights the need for manufacturers to ramp up their production capabilities. The rise in demand for AI and machine learning applications and the increasing prevalence of connected devices is expected to push the global semiconductor industry to new heights in the near future.
Frequently Asked Questions (FAQs) Related to the Above News
What is TSMC and what does it do?
TSMC stands for Taiwan Semiconductor Manufacturing Company. It is the world's largest contract chip manufacturer and produces computer chips and graphic cards.
Why has TSMC seen a surge in demand for its advanced process manufacturing capacity?
TSMC has seen a surge in demand for its advanced process manufacturing capacity due to increased orders from AI tech firm, Nvidia.
What is the utilization rate for TSMC's 5-nanometer process and 7-nanometer process?
The utilization rate for the 5-nanometer process has risen from 50% to 70% and 80%, while the 7-nanometer process has slowly increased from 30% to 50%.
How much did TSMC report in revenue for the first quarter?
TSMC reported that both the 5nm and 7nm processes accounted for approximately 50% of its first-quarter revenue, which was NT$176.53 billion ($5.73 billion).
What does this surge in demand mean for TSMC?
This surge in demand is expected to increase TSMC's output and profit in the coming months.
Why is TSMC's advanced process manufacturing capacity crucial?
TSMC's advanced process manufacturing capacity is crucial for the production of high-end computer chips and graphic cards.
What does this development indicate about the market dominance of TSMC?
This development showcases the market dominance of TSMC in the chip manufacturing industry.
What is the expected growth rate of the global semiconductor industry in the coming years?
The global semiconductor industry is expected to grow at a steady rate in the coming years due to the rise in demand for AI and machine learning applications and the increasing prevalence of connected devices.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
