Taipei, Friday, July 25, 2014 03:02 (GMT+8)
partly cloudy
Taipei
28°C
TSMC 28nm ramp-up within expectations, says Digitimes Research
Jessie Shen, DIGITIMES, Taipei [Tuesday 17 April 2012]

Taiwan Semiconductor Manufacturing Company (TSMC) could ramp up its 28nm production capacity at a much faster pace than older 40/45nm and 65nm process nodes, according to Digitimes Research analyst Nobunaga Chai. To make such speculation about yield problems with TSMC's 28nm processes is unfair, said Chai, adding that the foundry is actually improving the process yield rate within its expectations.

When TSMC started ramping up its 40/45nm production capacity, it took 5-6 quarters to have the process contribute 10% to company revenues, Chai pointed out. As for 65nm, the period was shorter but still longer than three quarters allowing the process to account for 10% of TSMC's revenues, Chai said.

The newer 28nm technology started generating revenues in the fourth quarter of 2011, and the sales ratio is estimated at about 5% in the following quarter, Chai noted. It is anticipated to see TSMC significantly ramp up its 28nm production capacity later in 2012, Chai believes.

TSMC's current yield rate on its 28nm processes is not poor at all, but maybe has not yet reached a certain level that is able to persuade the company to expand capacity aggressively, Chai indicated. Despite being cautious, TSMC's 28nm expansion plans have been kept on track, Chai said.

In addition, let's not forget that 28nm is still new in the industry, Chai said. Making chips using the process is still not stable and some companies recognize it is a risk to their products, Chai observed. Apple, for instance, still uses 45nm to manufacture its newest A5X chips.

TSMC previously had yield problems with its 40/45nm process technology, and saw the ramp-up schedule interrupted. Revenues from the nodes accounted for as little as 1% in the first half of 2009. The proportion climbed slightly to 4% in the third quarter, and finally approached 10% in the last quarter of the year.

Around mid-2009, Rick Tsai resigned from his position as TSMC CEO, with chairman Morris Chang returning to the helm. Later in the year, TSMC hired its former VP of R&D Shang-Yi Chiang to again lead its R&D.

TSMC in October 2011 entered volume production for its 28nm processes. Sales of 28nm accounted for 2% of TSMC's revenues in the fourth quarter of the year.

Chang remarked previously that TSMC's 28nm process technology would play an important source of company growth in 2012.

TSMC: Sales contribution made by 65nm during ramp-up

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

40/45nm

0%

0%

0%

0%

0%

0%

0%

0%

0%

1%

65nm

0%

1%

3%

7%

10%

15%

18%

25%

27%

23%

Source: Company, compiled by Digitimes, April 2012

TSMC: Sales contribution made by 40/45nm during ramp-up

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

28nm

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

2%

40/45nm

1%

1%

4%

9%

14%

16%

17%

21%

22%

26%

27%

27%

Source: Company, compiled by Digitimes, April 2012

TSMC: Sales contribution made by 28nm during ramp-up

4Q11

1Q12(e)

28nm

2%

5%

Source: Company, compiled by Digitimes, April 2012

Realtime news
  • Google to incorporate NFC functionality into Android

    Mobile + telecom | 5h 24min ago

  • TPCA urges Taiwan government to upgrade PCB industry

    Bits + chips | 5h 36min ago

  • TSMC to offer more wafer starts to MediaTek in 3Q14

    Bits + chips | 7h 32min ago

  • TPK sees 2Q14 gross margin drop sequentially

    Before Going to Press | 6h 12min ago

  • O-film Tech to acquire Shenzhen Temobi Science & Tech

    Before Going to Press | 6h 14min ago

  • PCB maker Apex completes capital expansion

    Before Going to Press | 6h 27min ago

  • Handset solution vendors may roll out 10-core CPUs in 2015

    Before Going to Press | 6h 38min ago

  • TPK posts 1H14 net EPS of NT$1.37

    Before Going to Press | 6h 38min ago

  • China market: Mainstream pricing for smart wireless routers stands at CNY100-200

    Before Going to Press | 6h 39min ago

  • More IC vendors to engage in merger or acquisition deals

    Before Going to Press | 6h 41min ago

  • Intel to launch Core M for use in notebook/tablet 2-in-1 models in 4Q14

    Before Going to Press | 6h 41min ago

  • Notebook thermal module makers eye business opportunities from electric vehicles

    Before Going to Press | 7h 50min ago

  • Career expects sales to peak in 4Q14

    Before Going to Press | 7h 51min ago

  • Acer sees booming sales of Chromebooks, says CEO

    Before Going to Press | 7h 59min ago

  • China PV module makers expected to ask Taiwan solar cell makers to offer incentives

    Before Going to Press | 8h 12min ago

  • LG launches cloud-based monitors

    Before Going to Press | 8h 13min ago

  • AUO able to produce 42- to 75-inch WCG curved Ultra HD TV panels

    Before Going to Press | 8h 15min ago

  • Touch Taiwan 2014 to take place in late August

    Before Going to Press | 8h 16min ago

  • Global Ultra HD TV penetration to reach at least 6-8% in 2014

    Before Going to Press | 8h 16min ago

  • Digitimes Research: Japan promoting service robots

    Before Going to Press | 8h 17min ago

  • Small- to medium-size China smartphone component makers under pressure of being forced out in 2H14

    Before Going to Press | 8h 18min ago

Pause
 | 
View more
Analysis of China revised domestic semiconductor industry goals
DIGITIMES Marketing Services
2014 global notebook demand forecast
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.