On April 22, TSMC held an interim board meeting and approved a capital budget of 2.887 billion US dollars. It will expand the production capacity of 28nm process in its Nanjing plant. It is expected that mass production will start in the second half of 2022, and the target is to reach 40000 pieces per month by 2023.
In the current global serious lack of core, many domestic component enterprises are forced to close down because they can not get chips. This should be a piece of exciting news for the industry, but it has caused great controversy on the Internet.
There are five main objections to TSMC's 28nm expansion in Nanjing
First, the high end does not sell you, the low end will bring you down.
Third, TSMC cannot use Chinese mainland's preferential policies to crack down on Chinese mainland enterprises.
Fourth, the semiconductor industry in Chinese mainland must be controlled independently and protected.
Let's analyze them one by one.
This is of great significance to Huawei's continuous supply capability.
At the low end, first of all, 28nm is a mature process, not a low-end process. The technology is very intensive, and there are very few mass production manufacturers.
Secondly, the first phase of TSMC Nanjing plant is to build a capacity of 16nm. If it is only to bring down SMIC international and other mainland enterprises, then the first phase will start to build 28nm, which has a huge advantage, instead of expanding production after SMIC International's 28nm process is mature and the gap is greatly narrowed.
Thirdly, the 28nm process is not only in serious shortage now, but also in structural shortage in the next few years due to its wide application. TSMC's new production capacity of 20000 chips by 2023 will not seriously squeeze the market space of SMIC international, let alone the huge differences in the target markets between the two sides.
It is certain that TSMC has enjoyed the good policies of Nanjing.
The problem is that SMIC and other enterprises have received better policy support. Last year, SMIC was listed on A-share Lightspeed, raising more than 50 billion yuan.
In addition, many local governments have also invested heavily in joint ventures with SMIC to build factories. For example, in March this year, SMIC and Shenzhen municipal government reached a strategic cooperation. The two sides invested 2.35 billion US dollars to focus on the production of 28nm and above products, aiming at the production capacity of 40000 pieces per month. These conditions are much better than those of TSMC.
From another point of view, most of TSMC's 28nm production capacity is in Taiwan. As one of the most important enterprises in Taiwan, TSMC also enjoys a series of favorable policy treatment in Taiwan.
From another point of view, the expansion of TSMC's Nanjing plant is exactly what the State encourages and supports.
The policy will attract global semiconductor manufacturers to Chinese mainland. Now that TSMC has sent it to its own home, why should it oppose it?
This is a false proposition. Independent control does not conflict with TSMC's production expansion. China did not require TSMC to build factories in the form of joint ventures, nor did it require TSMC to transfer technology, nor did it rely on TSMC to achieve independent control.
China is the largest chip market in the world, and semiconductor OEM capacity is extremely short. The expansion of TSMC Nanjing plant can effectively relieve the pressure and serve local chip enterprises nearby.
According to the industry view, TSMC's main purpose of joining the US Semiconductor Alliance, like other US enterprises, is to target at the US government's $50 billion semiconductor support fund.
No matter what they do in the United States, TSMC's expansion in Nanjing is subjectively to make profits. Objectively, it can also help China's semiconductor industry grow bigger and stronger. According to Taiwan's media, there are also factors to please China and balance the establishment of factories in the United States.
I'm afraid it's not in the interest of the United States to cooperate with its crackdown. If we want to guard against big fluctuations in the domestic semiconductor industry caused by TSMC's investment trends, is it the safest way to keep it in China?
Chinese mainland, China, Taiwan, Korea, the United States and the European Union are planning to invest heavily in developing the semiconductor industry.
SMIC is very important to us; But the Chinese market is big enough to allow the power to go down, and China can also invest in Chinese mainland through TSMC and more Taiwan and foreign semiconductor enterprises, and form a bigger industrial cluster and have a greater voice.
Perhaps someday, we will laugh at the expansion of TSMC in Chinese mainland. Clear and light.
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Link to the original text:C114 China communication network