Demand for 55/90nm processes slows down

The slowing orders for 90/55nm processes came at the time when the 8- and 12-inch fabs at Taiwan Semiconductor Manufacturing Company (TSMC) are operating at full capacity and the capacity of the foundry house's 28/40nm processes has been fully booked, noted the sources.

As a result, some industry sources believe that the declining capacity utilization rates of the 90/55nm processes was triggered mainly by double-booking by some IC vendors which have been concerned that the tight production schedules at foundry houses may cause short supplies of ICs in the second half of 2014.