TSMC is expected to report record sales for 2019, driven by strong demand for its advanced manufacturing processes. Its 7nm production capacity has been fully occupied, thanks to robust orders from clients eyeing the strong growth of the 5G market. Less advanced processes, including the 16nm node, have also seen tight capacity, with delivery lead time extended. The foundry house is likely to see even stronger revenue growth in 2020. Packaging firm ASE Technology will also see strong growth momentum in 2020 coming from the 5G sector. In Taiwan, the government is ready to auction off its 5G spectrum to telecom operators in December, but it has yet to decide whether a dedicated frequency band should be reserved for other private enterprises or entities to implement their respective 5G vertical applications.
TSMC 16nm production lead time stretched: TSMC has already seen its 16nm chip supply fall short of demand, with longer delivery lead times, according to sources at IC design service companies.
ASE Technology to see growth momentum carry into 2020: ASE Technology is expected to see its revenues grow quarter by quarter into 2020 thanks to strong packaging demand from major clients including Apple, Huawei's HiSilicon, MediaTek and Qualcomm to support mass production of their new offerings, according to industry sources.
Taiwan to auction off 5G spectrum in December: Taiwan's government will start the bidding process for the release of related frequency bands to telecom operators for 5G services on December 10, and the auctions would likely to be carried out without plans to reserve a dedicated frequency band to be available for other private enterprises or entities to implement their respective 5G vertical applications, according to government sources.
