Chinese Foundries Driving Capacity Growth in Mature Process Technologies

According to a recent report by TrendForce, Chinese foundries are poised to be the key catalysts behind a projected 6% increase in the capacity of the world’s top ten mature process foundries. This growth is particularly notable for mature nodes—specifically those at 28 nm and above. The research indicates a robust uptick in average capacity utilization, which surged by 5% to 10% in the second half of the year (H2) compared to the first half (H1). This upward trend is expected to continue, with forecasts suggesting a climb to 75% capacity utilization by next year.

Key Expansion Plans for 2025

As we look ahead to 2025, several major expansion initiatives are set to further boost capacity in mature nodes. Noteworthy developments include:

- TSMC's JASM Fab in Kumamoto, Japan: This facility is part of TSMC's strategy to enhance its global footprint and address the growing demand for smaller, more efficient chips.

- SMIC’s Fabs: SMIC is expanding its operations in multiple locations, including its facilities in Lingang (Shanghai) and Beijing. This expansion aligns with China’s push to bolster its semiconductor industry and reduce reliance on foreign technology.

- HuaHong Group's Fab9 and Fab10: These fabs are integral to HuaHong's strategy to cater to a diverse array of markets, enabling higher production capacity and efficiency.

- Nexchip’s N1A3: Nexchip is also ramping up efforts to enhance its manufacturing capabilities, providing additional capacity in the mature node segment.

Market Implications

This growth in capacity is significant for the semiconductor market, as it addresses the escalating demand for mature process technologies used in various applications, from automotive to IoT devices. As these Chinese foundries expand their capacities, they not only strengthen regional supply chains but also contribute to a more resilient global semiconductor ecosystem.

In summary, with increased utilization rates and ambitious expansion plans, Chinese foundries are leading the charge in scaling up capacity for mature process nodes, ensuring they remain critical players in the ever-evolving semiconductor landscape.