The trade war has no impact! TSMC's Liu Deyin: Nanjing plant's production capacity is quite full

TSMC Chairman Liu Deyin attended the 2019 CommonWealth Corporate Citizen Award Ceremony today (5). In an interview with the media after the meeting, he said that in the early stage of the Sino-US trade war, it was believed that the business of mainland manufacturers might be affected, which in turn impacted TSMC's performance. Now it seems that the impact is not significant. The Nanjing plant's production capacity is quite full, and it will expand as planned next year.

The Nanjing plant's current production capacity is 10,000 pieces, and it is expected to increase by 5,000 pieces in the second half of the year and another 5,000 pieces next year, achieving the first phase target of 20,000 pieces per month. Liu Deyin emphasized that everything is currently being completed at the original speed to complete the factory expansion plan.

Looking ahead to the future market, Liu Deyin emphasized that the main driving force in the second half of this year is 7nm, and demand remains strong. He laughed and said that because no one in the world can do it, TSMC will get through the second half of the year safely; the situation for the whole year is similar to previous estimates.

He added that the trade war seems likely to continue next year, and the industry outlook appears to be worse than previously expected. However, TSMC maintains its technological leadership and currently has high order visibility. It is optimistic that 5G will be the main driving force next year, driving demand for applications such as smartphones and high-performance computing.

Liu Deyin believes that overall, operations next year are quite optimistic, which is why the company has been boldly recruiting and expanding production in the near future. The capital expenditure will be explained in detail in the next financial report.

In addition, regarding the mainland's active poaching of talents from Taiwan, Liu Deyin said that he has seen some signs in the company, but the number is very small, and because he firmly believes that only TSMC is where these technical talents can give full play to their abilities, he is not worried about their talents being poached.