In recent years, the global semiconductor chip market has faced unprecedented challenges. First, the chip ban imposed by the United States on Chinese companies such as Huawei has put the chip industry in a difficult position. Secondly, the impact of various factors has led to the cooling of the global semiconductor chip market, which is undoubtedly a huge blow to foundries such as TSMC.
1. The impact of the chip ban in the United States
The chip ban imposed by the United States on Huawei and other Chinese companies has made it impossible for TSMC to continue to provide chip foundry services for these manufacturers. This caused TSMC to lose a large number of orders**, which had a significant impact on its operations. For foundry companies like TSMC, the stability and quantity of orders are very important, and once the order volume is reduced, it will lead to a decline in capacity utilization and losses to the enterprise.
2. Global market demand is declining
The global semiconductor chip market is cold, and the decline in market demand is one of the reasons that cannot be ignored. In particular, the decline in mobile phone sales has led to a decrease in demand for chips. As the world's largest wafer foundry, TSMC has a high degree of dependence on mobile phone chip foundry, so the cold mobile phone market has directly impacted its revenue and net profit.
As a giant in the global chip foundry field, TSMC accounts for nearly half of the market share, and has to take a series of measures to deal with the dilemma in the face of market changes.
1. Application of price reduction strategy
In the face of declining market demand and reduced order volumes, TSMC was forced to start cutting prices. This move aims to improve the competitiveness of the product, strive to attract more customers, and hope to seize market share by providing more competitive products. In addition to the most advanced 3nm process, TSMC has also begun to reduce prices in the field of 28nm mature process, with a price reduction of about 2%-5%.
Expansion: The price reduction strategy is a double-edged sword for TSMC. Although price reductions can attract more customers, they also put certain economic pressure on enterprises. Price cuts could reduce TSMC's profit margins, which in turn could affect the profitability of the business. Therefore, TSMC needs to seek other growth points while reducing prices and reducing its dependence on the foundry business.
2. Actively seek orders
Due to the decrease in orders, TSMC's capacity utilization rate has declined, and in order to cope with this situation, TSMC began to ask for orders everywhere. They are working with companies in India, Japan and other countries, and strengthening cooperation with European companies in order to get more orders**. In addition, TSMC has also strengthened cooperation with mainland manufacturers and began to attach importance to the development of the mainland market.
Expansion: In order to attract more customers, TSMC will provide better service and more flexible delivery times in addition to price reductions. These efforts are aimed at increasing customer satisfaction and better meeting customer needs, which in turn promotes an increase in orders. However, these measures do not always work. The global chip market is fiercely competitive, and other foundries are also actively seeking orders, so TSMC is still facing a lot of competitive pressure in this process.
TSMC's move to cut prices and seek orders here and there are a number of challenges that won't change the trend of declining revenue and net profit. In the face of changes in the market, TSMC needs to take more measures to respond.
1. The importance of technology research and development
The competition in the global semiconductor chip industry is becoming more and more fierce, and technological innovation has become the key for enterprises to gain a foothold in the market. As a global leader in the field of chip foundry, TSMC must strengthen its own technology research and development capabilities and continuously introduce more advanced and high-performance chip processes to meet customer needs and maintain a competitive advantage.
2. Strengthen communication and cooperation with customers
Communication and cooperation with customers is one of TSMC's important strategies. By in-depth understanding of customer needs, timely adjustment of chip foundry solutions, and provision of personalized services, it can enhance customer stickiness and help TSMC better grasp market opportunities. At the same time, cooperation with customers can also reduce customers' requirements for core technologies, reduce dependence on foundry companies, and improve TSMC's bargaining power.
Changes in the global semiconductor chip market have posed severe challenges to foundries such as TSMC. In the face of these challenges, TSMC has taken measures such as cutting prices and asking for orders everywhere, but these measures may not be able to change the current predicament to a large extent. In the future, TSMC needs to strengthen technology research and development, improve service quality, and strengthen communication and cooperation with customers to cope with market changes and competitive pressure. Only by continuing to innovate and meet the challenges of the market can TSMC maintain its leading position in the chip foundry field and find new growth drivers.