TSMC seeing brisk demand for 16nm chips from China

Almost 10 China-based IC design houses have already entered design-in process using TSMC's 16nm FinFET technology, which is ready for rapid demand growth in China, according to Roger Luo, VP of TSMC's China business development.

In China, 16nm chip demand for a broad range of applications including mobile computing, network communications, Bitcoin mining and FPGA has emerged, said Luo. Demand for advanced 16nm node manufacturing indicates a flourishing IC design industry, Luo indicated.

TSMC has seen robust demand for 28nm chips from China's IC design sector, with many customers already offering their complete 28nm product portfolios, Luo noted.

China-based IC design houses have been expanding their worldwide market presence. First-tier players including HiSilicon and Spreadtrum have already emerged to play in the global marketplace, said Luo, adding that China has been catching up fast in terms of design capabilities.

According to IC Insights, there were nine China-based companies among the top-50 fabless companies in 2014 as compared to only one in 2009.

Mobile devices will remain the biggest driving force behind China's IC design industry growth, Luo believes. The rise of China-based handset brands and the country's transition to 4G will make a positive contribution to the growth of China's IC design sector, Luo said.

For TSMC, sales generated from the China market continue to grow at a gradual pace. China accounted for 7% of TSMC's overall revenues in 2014, compared with 6% in 2013, 5% in 2012 and 4% in 2011, Luo disclosed.

TSMC's revenues generated from the China market jumped to NT$53.4 billion in 2014 from NT$17.1 billion in 2011, representing a CAGR of 46%, Luo noted.

In China, TSMC currently has an 8-inch wafer fab located in Songjiang (Shanghai) with monthly production capacity exceeding 100,000 units, Luo said. The fab has production lines for the manufacture of chips for use in handsets, tablets, consumer electronics, TVs and IoT applications.

Roger Luo, VP of China business development of TSMC
Photo: Josephien Lien, October 2015