Demand for 7nm manufacturing capacity at TSMC is so strong that long lines have been formed trying to secure supply from the foundry house for the advanced process. As supply is tight, TSMC has reportedly asked clients to book capacity well in advance for the entire 2020. Part of the reason for the strong demand of TSMC's 7nm capacity is the coming of the 5G era. It is expected that 5G-enabled smartphone shipments to the Chinese and Korean markets will reach 10 million units in 2019. Meanwhile, Taiwan-based foundry UMC, though not as eager as TSMC in advancing manufacturing nodes, is expected to see significant sales growth in 2020, partly thanks to expansion in the Japan market.
TSMC advises clients to book 7nm capacity for entire 2020: TSMC has advised its clients to book foundry capacity well in advance for their 7nm chip demand for the entire 2020, according to industry sources.
5G phone shipments in China, Korea to total 10 million units in 2019: Combined shipments of 5G-enabled smartphones from Chinese and Korean vendors are expected to reach about 10 million units in 2019 - a result of collaboration between telecom operators and handset makers, according to market observers.
UMC revenues to climb at least 10% in 2020: Pure-play foundry United Microelectronics (UMC) is expected to post revenue growth of at least 10% in 2020, thanks mainly to its expanded business scale in Japan, according to market sources.
