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The report comes from Digitimes, and has been translated past a bilingual Twitter account named RetiredEngineer. It states that TSMC’due south three biggest customers are backpedaling on future orders for wafer capacity. Apple has already begun production of the iPhone xiv, but has already cutting its “first wave” order of ninety million phones by 10 percent. AMD reduced its guild for seven/6nm by 20,000 wafers for the quaternary quarter also. However, it states lodge volume for 5nm wafers for PCs and servers is unchanged. That is assumedly its Zen four, Epyc/Threadripper, and RDNA3 products.
Nvidia is apparently in a much tougher spot though, and is getting pushback from TSMC. The visitor famously switched from Samsung’southward 8nm process to TSMC’s 5nm node for its RTX 40-series. In doing so, it allegedly made a massive down payment on 5nm and below wafer capacity. This was all done mid-pandemic, so information technology was a smart move at the time. Now that crypto mining has crashed though, there’due south a deluge of 30-series GPUs on the market place. The article calls it “enormous aqueduct inventory.” This has acquired Nvidia’s partners to reduce their orders, and then Nvidia is asking for some slack from TSMC. However, TSMC is reportedly unwilling to reduce its order.
All it’s offering Nvidia is to button the starting time shipment of GPUs dorsum one quarter. Or, if it really needs it, information technology can exist pushed to Q1 of 2023. Yet, if Nvidia takes this offering it will be responsible for finding a replacement for the now-idle fab capacity. That is likely going to be a very tough ask. Not only because of the electric current market place conditions, but what they’re projected to be at the cease of the twelvemonth. Information technology’due south the whole reason why these companies are asking to reduce their orders in the first place. Also, those quarterly numbers aligns with the rumors Nvidia would exist unveiled the RTX 40-series in September. Pushing it back on quarter would put it in Q4, and then one more is Q1. Nosotros certainly hope that doesn’t happen, but it seems probable.
The overarching bulletin of the article is about how the situation is causing “pessimism” within the semiconductor manufacture. That’s according to a full translation on Reddit. The unprecedented nature of the three company’s asking is giving everyone jitters. Adding stress to the situation is global inventories for jail cell phones, TVs, and notebooks are increasing rapidly. It looks like a total reversal in terms of supply and demand that was experienced over the past two years. The bottom line is that TSMC will likely revise its 2022 annual projections. Despite this unexpected hiccup, the company remains confident in its outlook for the side by side five years. Equally we’ve noted before, information technology’s about to begin its 3nm production, which is expected to be a very popular node. TSMC thinks and so too, and plans to keep it operational for at least three years.
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