2021 BRN Discussion, page-15070

I can't remember if this has previously been posted, but TSMC has been continuing to expand on its ability to produce 28nm chips.

Back in April TSMC announced they would spend $3 billion USD to upgrade it's China facility to be able to produce more 28nm and 14nm chips.

Back in June TSMC are considering building it's first Japanese chip fab in Kumamoto, which will likely produce 16nm and 28nm chips. The Japanese government has made a proposal which is being considered.

Apparently a lot of the big customers have suddenly wanted 28nm chips produced.

It's interesting because about a decade ago TSMC greatly expanded their 28nm capacity but the customer demand wasn't as high as expected. They haven't been getting the utilisation they were wanting. However, over the past year or so there has been a huge increase so now they're considering further expansion to meet demand (see the second article below a more detailed description).
I can't help but wonder how much Brainchip is contributing towards this demand with it's desire to "saturate the market".


https://www.datacenterdynamics.com/en/news/tsmc-considers-chip-fab-in-kumamoto-its-first-japanese-semiconductor-factory/

The world's biggest contract chipmaker is mulling an expansion in Japan.

Taiwan Semiconductor Manufacturing Co. is considering building a chip fab in Kumamoto Prefecture, western Japan, near a Sony factory complex.

Citing four sources, Nikkei Asia says that TSMC is evaluating the site and an incentive package from the state.
"TSMC is considering a proposal by the Japanese government to build an advanced chip factory in Japan, though it has not yet fully committed and finalized [the plan]," one of the sources said.
If it went ahead, it would be the company's first production hub in Japan, which accounted for 4.7 percent of TSMC's revenue in 2020.
Sony would be one of the new site's major customers, as its image sensor and microcontroller business booms. But it would not have a stake in the plant, which is expected to be able to produce 28nm and 16nm chips.
The move would be a shift for TSMC, which has traditionally kept most of its research and production in its homeland.

But with the global chip shortage, rising US-China tensions, and concerns over being cut off from the technology of the modern age, governments are competing to offer huge incentives to TSMC to build in their countries.

The company is developing a $12bn+ site in Arizona, expanding its Chinese site, and considering opening a plant in the EU.

At the same time, it is pumping tens of billions into its Taiwanese fabs, with a total of $100bn expected to be spent worldwide over three years.

https://english.cw.com.tw/article/article.action?id=2978
During an extraordinary board meeting on April 22, top semiconductor chip manufacturer Taiwan Semiconductor Corporation (TSMC) announced the approval of a US$2.887 billion capital budget to build mature process production capacity.
TSMC noted that these funds would be earmarked for its manufacturing complex in Nanjing, China, to establish a monthly manufacturing capacity of 40,000 28nm process chips. Full production is expected to begin in the second half of 2022, reaching the full capacity of 40,000 wafers in mid-2023 to meet the urgent demands of customers worldwide for 28nm production capacity in the quickest fashion.
The news rocked the industry. First was the timing of the move, set to double the capacity of TSMC’s Nanjing plant, at a sensitive time under the tense atmosphere of the U.S.-China technology cold war.

During TSMC’s 3Q shareholders meeting of 2019, it was resolved to greatly increase capital expenditure by 40 percent to the US$14-15 billion range. Liu stressed that the company conducted a “very thorough analysis, so we’re confident that we won’t be going down the same (28nm) road again.”

“Much to their surprise, the customers came, and then this year the big customers suddenly demanded 28nm!” exclaimed the analyst. The key was Sony’s decision to incorporate the 28nm process to produce image signal processors (ISP) for inclusion in Sony’s in-house image sensors for use in iPhones. Not only that, but Sony’s appetite reached 40,000 wafers.

Apparently, “customer management” turned out to be Sony, and Apple behind them.

The sudden influx of big orders caused a rapid supply shortage for the formerly “empty” 28nm process chips. “Since they can’t just chase away the little companies they already committed to, TSMC just has to grit its teeth and expand,” remarked the analyst.