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As expected, Taiwan Semiconductor Manufacturing Company cannot meet demand for chips produced using 28nm process technologies due to low yields and insufficient production capacities, a media report citing industry source claims. The shortages are projected to ease only by the end of Q3 2012.

TSMC's customers who utilize 28nm process technology - Advanced Micro Devices, Nvidia Corp. and Qualcomm - have all faced shortages of 28nm chips. AMD has announced a number of 28nm graphics processing units so far, but their availability is not truly wide; Nvidia has also managed to introduce a number of 28nm GPUs, but blamed TSMC for undersupplies; Qualcomm is also frustrated with tight supply of its chips that TSMC produces using 28nm fabrication process.

The tight supply of chips made at TSMC utilizing 28nm technology is a result of both relatively low yields (which are gradually improving) and TSMC's reluctance to quickly boost manufacturing capacities "in order to maintain gross margins", reports DigiTimes web-site.

In Q4 2011, 28 process technology accounted for 2% of total wafer revenues. In Q1 2012 TSMC expects wafers processed using 28nm process technologies to account for 5% of revenue. The world's largest contract maker of semiconductors said it expected 28nm ramp to be fast and projected that the process technology will contribute to more than 10% of total wafer revenue this year. According to unofficial sources, the shortage of 28nm manufacturing capacities will get lower at the end of the third quarter of 2012.

TSMC has so far completed 36 individual tape-outs and have scheduled another 132 individual product tape-outs in this year. At present the company produces chips using 28LP (SiON), 28HP (HKMG) and 28HPL (HKMG) versions of the process. The 28HPM flavour entered risk production this quarter and the manufacturer expects to start volume manufacturing of chips using 28HPM in the second half of 2012.

Tags: TSMC, Semiconductor, 28nm, Qualcomm, AMD, Nvidia

Discussion

Comments currently: 13
Discussion started: 04/06/12 02:18:50 PM
Latest comment: 04/09/12 03:39:27 PM
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[1-7]

1. 
TSMC announced in '11 that there was no way they could meet 28nm demand until they got a new Fab up to speed in '12 so this should not be a surprise.

AMD's 28nm graphic chips seem to be Fab'ing fine since the first of this year but Nvidia 28nm chips have a very low yield according to a numer of sources - due to engineering issues in Nvidia's design, not due to the 28nm process.

If TSMC doesn't have another Fab up to speed by Aug. '12 then everyone is up the creek IMO.
4 1 [Posted by: beenthere  | Date: 04/06/12 02:18:50 PM]
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2. 
The shortages are projected to ease only by the end of Q3 2012



We know why that is... Bcoz GLOFO is ramping at the same date...TSMC is one shady company or should i say greedy.

1 0 [Posted by: keysplayer  | Date: 04/06/12 03:07:39 PM]
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- collapse thread

 
GF's 32nm gate-first HKMG/SOI is harder to produce than TSMC's 28nm gate-last HKMG. Economic efficiency of the two process technologies seems to be more or less similar. Yet, GF has managed to ramp up its 32 to commecial volumes.
1 0 [Posted by: Anton  | Date: 04/08/12 04:43:47 PM]
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3. 
hmm, tsmc; amd; nvidia cartel for speculate with high prices?
0 2 [Posted by: Anton Markov  | Date: 04/06/12 03:56:30 PM]
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4. 
And meanwhile Intel is churning out 22nm like nothing.
1 1 [Posted by: AnonymousGuy  | Date: 04/06/12 04:40:14 PM]
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5. 
With high class commissions(and soldiers also) of FBI; CIA; FTC must together dividing cartel between tsmc; amd; nvidia!
0 1 [Posted by: Anton Markov  | Date: 04/07/12 01:05:21 AM]
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6. 
TSMC and nvidia should just contract some aspergers engineers
0 1 [Posted by: buxcador  | Date: 04/08/12 04:31:06 PM]
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7. 
I hope that capacity does increase soon so it will drive the prices down.
0 0 [Posted by: Astral Abyss  | Date: 04/09/12 08:04:23 AM]
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- collapse thread

 
Prices will downgrade when cartel was divided.
0 1 [Posted by: Anton Markov  | Date: 04/09/12 12:55:17 PM]
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