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28nm Chips Remain in Short Supply at TSMC

According to a report published by Digitimes, the capacity shortage is expected to ease beginning in the third quarter of this year, industry sources told the publication.

The article further suggests that Qualcomm moved some of its 28nm orders to United Microelectronics, as TSMC has not been able to meet demand for smartphones and tablet PCs yet. AMD's 28nm GPU shipments are also behind as is Nvidia's Kepler architecture, Digitimes said.

TSMC reportedly remains "conservative" about a 28 nm expansion and is focused to maintain gross margins at this time. As a result, 28nm supply is only improving slowly.