TSMC may benefit from PC inventory adjustment

In light of recent fluctuations in the semiconductor industry, Taiwan Semiconductor Manufacturing Company (TSMC) has found itself somewhat perturbed, with murmurs surfacing regarding the postponement of equipment deliveries from primary chip manufacturing tool suppliers, delays in the 2nm process node, and potential revisions to its revenue projections.

According to Wccftech, with Apple unveiling its iPhone 15 series and September drawing to its close, TSMC can seemingly breathe a sigh of relief. The likelihood of another revenue forecast reduction for the current year appears to be diminishing, with even brighter prospects anticipated for the subsequent year. This resurgence in optimism stems from the gradual resolution of inventory surpluses and the rekindling of demand within the PC market. Numerous manufacturers are opting to replenish their orders, which augurs well for a potential surge in TSMC’s order volume in the coming year.

TSMC’s 2nm process

Further buoying TSMC’s prospects is NVIDIA’s persistent augmentation of its data center GPU orders. Coupled with the emergent orders from companies like AMD, TSMC is poised to sustain a commendably high capacity utilization rate, fortifying its financial performance. The present quandary lies in TSMC’s constrained capacity in advanced packaging. In response, beyond the initial capacity expansion goals, they have sanctioned an additional 30% order for advanced packaging equipment, underscoring the fervent demand in the contemporary Artificial Intelligence (AI) market. It’s noteworthy that NVIDIA currently dominates as TSMC’s largest client for CoWoS packaging, occupying 60% of the capacity.

It’s projected that TSMC will progressively finalize the delivery and installation of advanced packaging equipment in the first half of the upcoming year. This initiative will bolster the monthly capacity for advanced packaging from the current 15,000 to 20,000 wafers to an impressive 25,000 or more, granting TSMC ample capacity to cater to AI chip orders. TSMC aspires to alleviate pressures on advanced packaging capacity by the latter half of 2024.