TSMC's Nanjing 28nm expansion project is going to be yellow?

In April, media reports stated that TSMC planned to invest US$2.887 billion (approximately 18.8 billion yuan) to expand its production line in the Nanjing plant to a maximum capacity of 40,000 28nm.

At that time, when this news came out, many netizens opposed it. They believed that TSMC's move might be to suppress the Chinese chip manufacturing industry in order to grab the markets of Huahong and SMIC. Otherwise, why would it be to build a 5nm production line in the United States? In Nanjing, we will build a 28nm production line. We can produce 28nm by ourselves without the help of TSMC.

TSMC Nanjing expands its 28nm process, may it be yellow? Is it difficult to bring in equipment?

According to reports at the time, TSMCs production capacity will start to increase in the second half of 2022 and achieve this goal by 2023, eventually achieving a production capacity of 40,000 pieces/month, which is equivalent to doubling the current production capacity.

However, judging from the current situation, perhaps TSMC Nanjing's expansion of the 28nm process may be a problem, because related equipment may be difficult to bring in.

TSMC Nanjing expands its 28nm process, may it be yellow? Is it difficult to bring in equipment?

During the weekend, a piece of news came out saying that TSMCs expanded 28nm equipment has not been licensed by the United States and that the old 28nm equipment cannot be transferred from Taiwan to the mainland. It also requires a license. Currently, it is not licensed.

Although this news was later considered by some people to be false news without a credible source, in fact, judging from the current situation, the situation is indeed quite complicated.

Because in the past few months, some foreign-funded and Taiwan-funded enterprises have not obtained the permits when they make relevant applications. When will they be obtained and whether they will be permitted is indeed unknown? This is a very real question.

TSMC Nanjing expands its 28nm process, may it be yellow? Is it difficult to bring in equipment?

Even according to the media, in the past few months, the three major US semiconductor equipment suppliers, Applied Materials, Lam, and KLA, have not shipped from the United States to SMIC, and neither equipment nor materials have been shipped.

Especially those equipment used for more advanced chips at 28nm and below, such as lithography machines, atomic etching machines, epitaxial furnaces, etc., these equipment has been under strict control in the United States.

Obviously, even if the news is true and false, I am afraid that TSMC Nanjing will face very big difficulties when it expands production. With the continuous increase of domestic chip production capacity, this may become more and more difficult to implement. What do you think, course This is good news for SMIC and Hua Hong, one less competitor.