With the advantages of the advanced manufacturing processes and the trend of IDM outsourcing automotive MCU and other chips, the growth rate of TSMC's automotive chip orders may far exceed expectations.
DIGITIMES reported that TSMC’s dominance in advanced manufacturing is expected to attract an influx of orders for self-driving AI chips from customers including Nvidia, Qualcomm, Intel, and Tesla. As the absolute leader in the foundry field, TSMC occupies more than 90% of the 7/5nm node process market.
At the same time, the industry also believes that TSMC has become the biggest beneficiary of IDM's increased outsourcing of automotive MCUs and other chips to foundries. Sources said that TSMC has received about 70% of IDM's total automotive chip orders, and IDMs, including Infineon, NXP, STMicroelectronics, Texas Instruments, and Renesas, has produced 15% of the automotive chip production (mainly are automotive MCUs) outsourced to TSMC and other pure-play foundries. With limited room for growth in these IDM outputs, this percentage is expected to grow.
Prior to this, TSMC announced the expansion of production capacity to meet the growing demand for automotive chips, including the 28nm process production line under construction at the Nanjing 12-inch factory; at the end of last year, it reached an agreement with Sony to establish a joint venture factory in Kumamoto, Japan for 28/ 22nm process manufacturing, it has since been announced that it will enhance the production capacity of the joint venture through 12/16nm FinFET process technology, and the monthly production capacity has also been increased to 55,000 12-inch wafers from the previous 45,000, which is planned to be put into production in 2024.
In addition to TSMC, UMC, World Advanced and Powerchip have also launched expansion plans. It is reported that these foundries have obtained long-term order commitments from customers including automotive IC suppliers.
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