Foundries put chips on allocation as demand exceeds supply

Taiwan Semiconductor Manufacturing (TSMC) states consilidated revenues in March were $31.2 billion Taiwanese Dollar ($993.4 million), an improvement of 147.5 percent year over year.

Rumours also abound – TSMC is apparently going to buy the equipment of an unnamed Japanese IDM (Integrated Device Manufacturer) and use it to churn out CPUs, analogue ICs and the likes for the seller.

Hopefully the rumoured future client won’t be faced with the problems other fabless customers are having. Sources told TechEye last week they were on strict allocation, having to wait until TSMC can deliver their products.

Things are especially tough in the 40nm arena, as TSMC is responsible for 80 percent of worldwide capacity. Qualcomm, Nvidia and AMDATI have also placed large orders.

At AMD’s conference call last week, CEO Dirk Meyer said that demand exceeded supply, and Nvidia Fermi products also seem to be very thin on the ground.

Rivals UMC (United Microelectronics Corporation) and SMIC (Semiconductor Manufacturing International) are also seeing revenue grow for their 65nm processes. Digitimes cites a Chinese language report saying 65nm is currently responsible for 20 percent of UMC’s revenue and will contribute 25 percent by the end of this year’s second quarter.

SMIC will see its 65nm process grow to 5 to 7 percent by the end of the first half and to between 10 and 15 percent in the fourth quarter.