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TSMC to triple 28nm chip shipment this year, asserts confidence in 20nm demand

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At yesterday's investor meeting in Taipei, TSMC's chairman and CEO Morris Chang shared the good news that his company's 28nm chip shipment this year will triple that of last year, which should boost its annual increase in revenue to above the industry's average rate of seven percent. China Times reports that orders for TSMC's 28nm silicon are lined up to as far out as late Q3, courtesy of demand for ARM processors, baseband chips, graphics processors and x86 processors. This is no surprise considering the likes of Qualcomm (Snapdragon 600 and 800), Huawei (HiSilicon K3V2 Pro and K3V3), NVIDIA (Tegra 4), AMD (Temash and Kabini) and possibly Apple will be ordering more 28nm-based chipsets from the foundry throughout the year. TSMC did struggle with its 28nm supply for Qualcomm early last year, but it eventually caught up later on, and Chang stated that TSMC now owns nearly 100 percent of the 28nm process market.

Looking further ahead, Chang said his company's already seen enough clients and demand for the upcoming 20nm manufacturing process, which should have a more significant financial contribution in 2014. The exec also predicted that at TSMC, its 20nm production will see a bigger growth rate between 2014 and 2015 than its 28nm counterpart did between 2012 and 2013 -- the former should eventually nab close to 90 percent of the market, said Chang.

[Image credit: TSMC]

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