TSMC (2330-TW)(TSM-US) took the first shot of the wafer foundry, predicting that some capital expenditures this year will be deferred to next year.6770-TW) also admitted that the planned mass production schedule of the new Tongluo factory may be delayed, and the recent schedule including Micron (MU-US), South Asia Branch (2408-TW), SK Hynix and other memory factories have also successively lowered their capital expenditures for next year, indicating that the slowdown in market demand has been established, and more semiconductor factories are expected to release information on delays in production expansion plans.
TSMC said that it will report good news. Although the financial report is bright, the financial forecast and this year’s outlook are also better than expected, but TSMC also revealed that the supply chain is not smooth and equipment suppliers are facing challenges. Capital expenditures are deferred to next year, and this year’s capital expenditures are expected to be close to the original low of $40 billion.
Power Semiconductor also said that due to the lack of labor and materials in the past year, the construction schedule has been delayed by about 4-5 months. It was originally expected to move in the equipment in the fourth quarter. The delivery time is also seriously behind. In 2024, the production capacity target of the Tongluo factory of 35,000 pieces is determined to be unattainable, and it is striving to reach the loss level of 19,000 pieces in 2024.
TrendForce, a research institute, recently pointed out that the shortage of materials has led to the prolonged delivery of semiconductor equipment, which will affect the expansion plans of many large factories for about 2 to 9 months, so that the annual growth rate of global wafer foundry capacity will converge to 8 next year. %.
With the recent slowdown in demand in the semiconductor industry, the client is facing inventory corrections. TSMC, the leading foundry, estimates that the correction may continue until the first half of next year; although the shortage of materials has led to longer equipment delivery, the expansion of semiconductor factories or The delay in the construction of the factory and the delay in the opening of new production capacity will help alleviate the pressure of oversupply in the industry, and the foundry will have more leeway in coordinating production capacity and prices with customers.
In addition to wafer foundries, in the memory industry, where signs of weak market conditions emerged earlier, related manufacturers have also successively revised down capital expenditures for next year or released information that they will slow down production expansion. Considering the weakening of terminal demand in consumer markets such as personal computers and smartphones, and changes in market conditions, Micron is taking action to slow down the pace of supply growth next year. It intends to use existing inventory to meet order demand and reduce spending on new plants and equipment.
Coincidentally, Nanya Technology also announced at the recent legal meeting that due to the impact of equipment delivery, this year’s capital expenditure is estimated to be reduced by about 10% compared with the original expectation. SK Hynix is also considering reducing capital expenditure next year, and it is rumored that the amount will be cut by 25%.