Chip demand for more-than-Moore device applications has been picking up, lifting 8-inch fab utilization rates at a rapid pace recently, according to industry sources.

TSMC, UMC and VIS have all seen their 8-inch fab utilization rates climb recently, and are likely to be fully loaded soon, said the sources.

Promising demand for more-than-Moore technologies has already encouraged major pure-play foundries, such as TSMC, to build additional new 8-inch wafer manufacturing capacity, the sources indicated.

Automotive electronics- and IoT-related devices all demand more-than-Moore, namely specialty process technologies, instead of advanced process geometry shrinks. The more-than-Moore concept was first introduced in the 2005 edition of the International Technology Roadmap for Semiconductors (ITRS).

Having the world's largest 12-inch wafer production capacity, TSMC is constructing a new 8-inch fab that is believed to be targeting at orders for devices requiring more-than-Moore technology solutions, such as more diversified sensing components and power management ICs. Those chips are to satisfy mainly demand for the emerging edge AI, IoT and automotive applications, the sources said.

TSMC chairman Mark Liu remarked recently that the additional 8-inch fab capacity will add value to TSMC in terms of quality rather than quantity. At the new facility, TSMC intends to provide 8-inch fabrication services that differ from those of its counterparts, according to Liu.

TSMC CEO CC Wei was quoted in previous reports saying the pure-play foundry continues to focus on its advanced process technology leadership, and plans to add a new 8-inch fabrication facility to meet growing customer demand for specialty process technologies.