TSMC: We found out which customers produce for the warehouse and we limit their deliveries

Mark Liu presented a plan to improve the situation in the short term. If you have been following the events in IT for a long time, you will probably know this name, because he has been working in the top positions of the company for almost a decade and has been working at TSMC as such with one break for almost thirty years. As COO since 2012, as co-CEO since 2013 and as executive chairman of the company in 2018, when longtime chairman and CEO Morris Wang retired at the age of 87.

Mark Liu is currently tackling the dire situation of global chip shortages and came up with the following idea: He set up a team that monitors the differences between how many chips a customer orders and actually sells, based on market and supply chain monitoring. From this, the team selected “springs on the spring”, which they order but do not sell adequately the volume of orders, and reduced the priority of these customers.

Liu explains that these customers may be angry with him, but for him in the current situation, the priority is industry and not speculative customers whose activities are deepening the crisis.

If we accept that such entities exist, we must ask ourselves what leads them to such behavior. I do not consider the possibility that they would simply shop with a similar motivation as many people shopped when anti-drug measures were announced. In contrast to buying spaghetti for a few hundred, million orders will have a rational basis. This could see a further artificial restriction of supply in some segments, which would lead to rising prices and the possibility of subsequent sale of stocks for significantly higher amounts.

The second innovation, which will be reflected more in the long term, concerns the decision to expand production capacity rather than new processes. Specifically, it should be a 7nm and 28nm process. The second could help the automotive industry, the first perhaps still to the IT world. However, it depends on what is meant by the 7nm process. TSMC often means this generation for a whole generation, which includes the so-called 6nm process (which is a tuned version of the 7nm EUV production). While the original 7nm process will slowly leave the IT world at the end of this year (AMD has already started production of a 6nm APU Rembrandtwhich will replace the current 7nm Cezanne), The 6nm process is still in its era, so there will be a lot of room in the world of PC hardware for the use of possible expanded capacities: At the beginning of 2022, it will be the mentioned AMD Rembrandt, then Intel Arc graphics, later chiplets for AMD RDNA 3 and refresh RDNA 2. It can be expected that the 6nm process could be used by Nvidia for cheaper models from the series Lovelace (unless it uses a Samsung process).


Source: Diit.cz by diit.cz.

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