Friday, July 18th 2014
TSMC May Lose 16 nm and 14 nm Market Share to Competitors in 2015: Chairman
TSMC may lose out on orders to competing fabs on the 16 nanometer (nm) and 14 nm nodes, in terms of market share, in 2015, according to company chairman Morris Chang. Chips built on the 16 nm node will amount to single-digit percentages of the company's output in the year. Samsung Electronics is expected to take the lead on these processes, as it just netted orders from Qualcomm, a major mobile baseband chip and SoC designer.
Chang stressed that 20 nm and 16 nm will drive revenue for the next three years for major fabs. 20 nm products will account for 10 percent of TSMC's revenues in Q3 2014, will expand to 20 percent in Q4, and contribute over 20 percent of TSMC's revenues in 2015. TSMC's 16 nm node will be competitive for products such as mobile baseband chips, ICs, GPUs, NICs, and server chips. Despite these setbacks in the company's competitive outlook, it expects its revenues to grow by 12.6 to 14.2 percent sequentially in Q3 2014, year over year.
Source:
DigiTimes
Chang stressed that 20 nm and 16 nm will drive revenue for the next three years for major fabs. 20 nm products will account for 10 percent of TSMC's revenues in Q3 2014, will expand to 20 percent in Q4, and contribute over 20 percent of TSMC's revenues in 2015. TSMC's 16 nm node will be competitive for products such as mobile baseband chips, ICs, GPUs, NICs, and server chips. Despite these setbacks in the company's competitive outlook, it expects its revenues to grow by 12.6 to 14.2 percent sequentially in Q3 2014, year over year.
27 Comments on TSMC May Lose 16 nm and 14 nm Market Share to Competitors in 2015: Chairman
Why do you think that we care about all financial crap?
We would be perfectly fine without any quarter financial reports and market share news.
It's irrelevant to tech products anyways.
I am angry on you.
Also, loosing Qualcomm, who makes the snapdragon widely used in smartphones, to samsung would be a huge blow, and evidence that TSMC may be having quite a bit of trouble with the new processes. There are also rumors that apple is moving some A8 production back to samsung as well.
but, yeah, COMPLETELY irrelevant to technology, we are only talking about one of the largest fab companies in the world that makes cpus, gpus, and other technology products.
Eye of the beholder and all that.
We all know they are making loads of money and whether they increase / decrease their profits with few percents each quarter is complete bullshit having no direct connection with any product at your home or office or wherever you use them.
TSMC sounds like its having major tooling problems and the result is theyll lose money to Samsung/Glofo if they dont get the tooling fixed.
On topic, good move by Qualcomm. I personally think NVIDIA should go with Samsung too. TSMC was the only reason why NVIDIA had to (re)use the 28nm chip for Maxwell. It sucks when you have a great plan on hand and can't do anything about it because some people you rely on to help you with your plan are incompetent and slow. If it wasn't because of Samsung's 14nm process TSMC wouldn't accelerate their 20nm and 16nm process. I don't know, I think relying on them might give NVIDIA another delay. Who knows, they might improve, but they might also face more issues in the future. If I were JHH I wouldn't take that risk.
I really think TMSC is going to feel pain for their press release shenanigans, e.g. "28nm ready to go" and six months later "28nm delayed 12mos." They need to curb overpromising.
That said, I really believe that you don't need financial information about profit margins and market share in order to drive you what to buy.
It's silly. :)
Possibly look at the News Section as a sort of Tech Buffet. Take what helps you and leave the rest.
Did you know that TSMC had problems going to 20nm silicon, and so now we are just getting a more efficient 28Nm, and will have to wait for the huge increases in performance expected until the 9 series. These things affect financials, and finanials affect market share and production. A tech site should never be about only putting part A into part B, and how fast the resultant part C will be.
So, while you are free to have your opinion, and I applaud it, I think you are misguided, because the majority of us want the big picture, as it gives us insight into the future of our Tech and PC love. People arent passionate about vaccum cleaners and washing machines. Electronics, especially everything related to the PC world and its associated offshoots evokes passion! :D
Those big companies don't talk about future products or even if they do, it is not entirely clear whether it's true and whether something unexpected could happen meanwhile to ruin all plans anyways.
Sony Xperia S sucks ball.
I would also argue things like this are insightful beyond math deductions. While perhaps you can not out and out draw conclusions on things like performance, ramp, time-to-market, starting prices, price curves, total wafers able to be produced, or how the competition is fairing comparatively by what happens in statements, earning calls, or the grey information often reported by digitimes etc., you can surely infer it while getting a feel for what to expect; when or why (or later to explain why something happened that may not currently be public knowledge.) It most certainly is pertinent in that regard the same way a rumor about a new chip is, if not more-so, if you read articles like this with that mindset.
I will go wherever I want and the only person who can tell me about this .... is me.
It's so sad to live in a world with the evil too, but don't you worry, we have the fight with you and will destroy you in the end. Always good wins. :)
Pretty sure threatening to destroy people who are calling you out on trolling or disagreeing with you shows your true colours. The world doesn't revolve around you.
On topic this is good news - TSMCs dominance has held 20nm GPUs back so I'm glad we're seeing some competition at 16nm.
TSMC always has lots of teething problems with their new processes unfortunately, which severely affect the new GPU's production and consequently pricing as well. I guess most companies have finally gotten tired of this and the perpetually-delayed 20nm process may have been the last drop in the bucket.
I know it's not easy to switch to new foundries due to the new libraries and such from the foundry that need to be adjusted to the GPU (or whatever processing unit is being made), but most likely in the long term this will result in huge progress on the GPU front. These are exciting times! :rockout: