Feeds

TSMC fabs down to 50% capacity

Will it post a loss this quarter? Looks like it

  • alert
  • submit to reddit

TSMC's fabs are running at half capacity this quarter, company chairman Morris Chang has let slip in an interview with Forbes due to be published on 30 April.

As a measure of how tough business is in the chip industry, fab utilisation is a good barometer. If much more than half of a company's fab capacity is left idle, it's likely to start losing money, according to industry wisdom.

Chang doesn't appear to think the situation will get that bad, however. Q2 will mark the bottom of the trough the company finds itself in, he said in the interview, according to Taiwan's Commercial Times.

The recovery will come in the second half of the year, when it's estimated that the company will get up to - on average - 85 per cent of full capacity.

In the meantime, analysts expect TSMC to make a loss this quarter, CT reports. TSMC's Q1 sales were down 26.6 per cent on the previous quarter. During Q1 fab utilisation fell to 70 per cent of full capacity, so a further fall, to 50 per cent or below, is a sign sales are still sinking. Glug, glug, glug... ®

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.