Semiconductor Manufacturing Outlook Recovery and Future Prospects

TapTechNews July 4th news, TechInsights today released a report stating that with the gradual recovery of the memory market and enterprises actively preparing for the upcoming peak sales season, the utilization rate of semiconductor manufacturing plants has shaken off the trough last year, and it is expected to break through 80% in the second half of 2024. The capacity utilization rate of TSMC's 5-nanometer and below advanced processes is nearly saturated, and at the same time, it is reported that NAND flash memory manufacturers are also about to end the production reduction measures.

The report mentioned that the situation in the industrial and automotive markets is still unclear. Due to the stagnant market demand, manufacturers in the fields of analog chips and discrete devices were forced to cut production in the first half of 2024. Therefore, compared with the cutting-edge technology nodes, the utilization rate of wafer foundries in mature technology nodes is not ideal. But this situation is only temporary, and it is expected that the demand in this field will pick up somewhat in the second half of 2024 as the inventory is gradually digested.

Looking to the future, the report says that as the terminal demand fully recovers, the global wafer fab utilization rate is expected to increase to about 80% in the second half of 2024, and reach an average utilization rate of 90% in 2025.

TapTechNews noted that there was previously news that TSMC is preparing to announce a price increase starting from January 1 next year, mainly for 3/5nm, while other processes maintain the original price.

TSMC President Wei Zhejia also emphasized that TSMC's process is very power-saving, and the yield rate is relatively good. In terms of each die, TSMC is the cheapest and promised to progress quarter by quarter and improve year by year, always providing the most leading technology to customers.