TSMC's 7nm orders grow on smartphone demand

|About: Taiwan Semiconductor Manufa... (TSM)|By:, SA News Editor

TSMC (NYSE:TSM) has seen its 7nm chip orders ramp up and Q1 might have been the bottom for the process utilization rate in 2019, according to DigiTimes sources.

The utilization increase driven by chip orders for Android devices could create a strong Q2 for TSMC.

HiSilicon and AMD have "aggressively" ramped up wafer starts while Qualcomm and MediaTek are expected to follow later in Q2. Apple's iPhones for this fall will occupy most of the process capacity in Q3.

Last month, TSMC kicked off volume production of its EUV-based 7nm chips and mass shipments are expected in the second half.

TSMC gains 0.6% pre-market to $41.51. Micron (NASDAQ:MU+3.1% and Intel (NASDAQ:INTC+1.2% are also gaining possibly on the general market recovery the report suggests.

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