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TSMC Reportedly Auctioned off "Excess Capacity" at a 15-20% Price Premium

Raevenlord

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We've all been reading multiple stories covering the current overly high demand compared to manufacturing capability for semiconductors. Some of us have actually felt this lack in supply not only in our pockets (for those who purchased above-MSRP graphics cards, CPUs or consoles). And apparently, TSMC has just made quite a deal more money out of this "extraordinary demand" than it usually does, as it's being reported the company has auctioned off "excess capacity" to an unknown third-party for 15-20% higher prices than they usually practice.

Now before we start lynching TSMC here, that can mean many things. There is a backlog of orders still to be filled for most manufacturers, that much the reports doing the rounds claim; however, the nature of semiconductor manufacturing occurs throughout many different nodes and technologies. It's more than likely that this doesn't mean that TSMC saved some wafers that could have been used for AMD's RX, Zen, or custom APUs for next-gen consoles on the side and decided to give them to another buyer. This likely means that TSMC had one or more nodes or manufacturing technologies that hadn't been pre-booked yet, and that some players might've looked at that as a solution to their semiconductor woes. And TSMC, having more than one interested party, auctioned the excess capacity. The rumor places the most likely candidates for the purchase as car manufacturers, who have also been hard by the lack of semiconductors in the market, and that's one business where it may make sense to order manufacturing on nodes other than the most cutting-edge; cars just don't need the latest, most powerful and greatest chips to run their software. But all in all, the result is this: a good day for TSMC.



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Excess Capacity or Supply constraints. I thought there wasn't enough? So, which is it then, mmmmmm? The number of lies I have to see daily, I am so sick of it.
 
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Excess Capacity or Supply constraints. I thought there wasn't enough? So, which is it then, mmmmmm? The number of lies I have to see daily, I am so sick of it.
Techspot's running theory is that the "exxcess supply" is older nodes, such as 28, 20, and 14nm, that have been freed up as people go to 7nm.

I agree with you though, there have been so many bold faced lies pushed through every media orafice the last few years, my salt reserves are running low. I've had to take claims with pepper lately, it just isnt the same.

I wouldnt put it past TSMC to have excess 7nm supply being auctioned off to make some extra dosh, but they dont specify what is being sold.
 

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Excess Capacity or Supply constraints. I thought there wasn't enough? So, which is it then, mmmmmm?
As if they are tied together? :D

As an example..
Producer says: We can make 5 % more than expected.
Market says: We need 40 % more, at least.

See my point? Both can happen at the same time. There's nothing here that points to said excess capacity being the solution for the supply constraints.
 
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As if they are tied together? :D

As an example..
Producer says: We can make 5 % more than expected.
Market says: We need 40 % more, at least.

See my point? Both can happen at the same time. There's nothing here that points to said excess capacity being the solution for the supply constraints.
Indeed. And excess capacity can come from any number of sources. Improved rates of production, lower downtimes, cancelled orders, etc., etc.
 
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Excess Capacity or Supply constraints. I thought there wasn't enough ? So, which is it then, mmmmmm ? The number of lies I have to see daily, I am so sick of it.

Both can occur at the same time . For example TSMC allocates some 14nm factory space to 7nm production , this generates excess capacity ( in regards to what was previously possible ) which TSMC auctions at increased prices , yet still total 7nm production at TSMC doesn't meet the market needs hence the supply constrains ........ Excess capacity in relation to what could be previously achieved not in relation to market needs !
 
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Excess Capacity or Supply constraints. I thought there wasn't enough? So, which is it then, mmmmmm? The number of lies I have to see daily, I am so sick of it.
read it again
 
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I don't think car manufacturers contract with fabs like TSMC directly, at least not for SoCs. Other companies like Johnson controls Power Solutions do that. Like if you have a car that has homelink, good chance it's from Johnson controls whether it's a ford or a dodge. Same sort of deal with most blind spot / backup sensor setups.

I believe most of this has become like legos for the auto makers, the auto makers get the components from suppliers who build to their specs and then the auto maker does software customization for integration.
 
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What we need is intel, Samsung, or Glofo to catch up on node tech.
 
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What we need is intel, Samsung, or Glofo to catch up on node tech.
Glofo is dead.

Intel opening fabs to AMD is not going to happen.
 
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Glofo is dead.

Intel opening fabs to AMD is not going to happen.

I think if you re-read that without the brand loyalty bias, it may mean something different than you think it meant.

i.e. I did not interpret "we" to mean "AMD" as you apparently did.

I think "we" means "consumer" and it doesn't matter who designs the chips so much.
 

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Glofo is dead.

Intel opening fabs to AMD is not going to happen.
You think so? Not everything has to be on the latest and greatest process. I'm pretty sure the chips on the control board in your microwave aren't manufactured on a 14nm process or better.
 
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I think "we" means "consumer" and it doesn't matter who designs the chips so much.
There is no "we" to it.

GloFo is out of pushing new tech business, just licensing whatever others did.

No way in hell AMD would share its designs with Intel (there are also other reasons not to).

Those facts have zero "I buy CPUs only from manufacturer Bla" to it, perhaps it's your bias that shows.
 
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There is no "we" to it.

GloFo is out of pushing new tech business, just licensing whatever others did.

No way in hell AMD would share its designs with Intel (there are also other reasons not to).

Those facts have zero "I buy CPUs only from manufacturer Bla" to it, perhaps it's your bias that shows.

No one suggested or said anything about AMD building on Intel fabs except you.
 
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Benchmark Scores 3050 scores good 15-20% lower than average, despite ASUS's claims that it has uber cooling.
No one suggested or said anything about AMD building on Intel fabs except you.
Oh, so we talk about TSMC production shortages on a PC hardware forum, let me use my imagination to figure whom, besides major PC CPU&GPU manufacturer we had in mind...

Mm... got it, APPLE.
Apple devices shortages are soo harsh, they even dropped price on their brand new M1 notebook. Doh.
 
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