TSMC has recently claimed that the worst of 28 nm technology development should be left behind, and additional investments in capacity expansion allows not only to remove the deficit of 28 nm products, but also to begin development of new 20 nm process technology.
Morris Chang turned his attention to this issue . In the last quarter TSMC net income fell by 7.7% versus the same period last year. This does not preclude TSMC management from optimistic future, as in the third quarter, the company expects a growth . There have been signs of growth in the first quarter this year. About a third of TSMC revenue come from orders for the production of processors for mobile phones. It is in this sector, there is maximum demand.
If in the first quarter, TSMC has received only 5% of revenu from the production of 28 nm products, then in the fourth quarter this figure will rise to 20%. By the end of the year the company expects to eliminate the gaps between supply and demand in this segment. Morris Chang called the success of 28 nm process technology with TSMC customers deafening - a high demand caused the deficit. Launch of 20 nm chips by the end of the year will increase costs, but in the long term, new process technologies will reduce production costs.
TSMC plans to spend this year from $ 8 to $ 8.5 billion to build new factories and upgrading existing ones. Part of manufacturing facilities engaged in the production of 65-nm products are redesigned for production of 28 nm products. In 2013, according to Morris Chang, the problem of 28 nm chips shortage will be forgotten. To address this issue in the current year will be spent around $ 1.3 billion, approximately $ 0.7 billion this year will be spent on preparing for the release of 20-nm products.