TSMC Hit by Yield Issues?

According to an analyst with FBR Capital Markets, Taiwan Semiconductor Manufacturing Company (TSMC) is experiencing 40nm yield issues. The company acknowledged that it had 40nm yield issues but claimed the problems have been fixed.

''In fact, not only do our checks suggest 40-nm yields but, to our surprise, these have remained below 30 percent, affecting shipments in 2H09,'' he said in the report. ''We believe yields are as low as 20 percent to 30 percent, which may explain the recent management change. We think some key customers who are increasing 40-nm tape-outs have already started to evaluate other foundries (UMC) in case yields do not improve soon.''

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