As the world's leading semiconductor manufacturer, TSMC has always played an important role in the technology field. Today, however, they face some embarrassing dilemmas. Although TSMC's process technology has developed to 3nm, the number of orders is not as large as expected. Especially in the 7nm process, TSMC encountered a situation where no one cared about it and had to cut prices to grab orders. There are many reasons for this embarrassment.
First, the development of the semiconductor industry has made the design and manufacture of chips more complex. Customers have higher requirements for process technology and production equipment. Although TSMC has strong strength in these aspects, many customers prefer to choose more cost-effective chip process technology, especially the mature process above 28nm. This makes the 7nm process a bit awkward.
Secondly, market competition is also one of the reasons for the decrease in TSMC orders. There are a large number of semiconductor foundries around the world, and companies such as Samsung are also able to carry out 7nm and 3nm mass production. These foundries are competing for market share, and in order to get more orders, TSMC has to compete with other foundries, which will inevitably lead to the emergence of ** wars. In such an environment, even if TSMC's process technology is advanced, it is difficult to guarantee that it can get more orders.
Finally, changes in customer demand are also one of the reasons for the decrease in TSMC orders. With the development of technology, customers' demand for chips is also changing. Today, 80% of the chip demand in the market can be met by mature processes above 28nm, while the demand for advanced processes, such as chips with 3nm process, is concentrated in some customers with high requirements for cost and performance optimization. Compared with these demand groups, the 7nm process in the middle is a bit awkward.
TSMC's strategy of cutting prices and grabbing orders is effective for temporarily alleviating the predicament, but it is not sustainable in the long run. Price reductions can lead to lower profits, which are an important guarantee for maintaining the operation and development of a business. How should TSMC deal with the current predicament?
1. Strengthen its own R&D capabilities
In order to get more orders, TSMC needs to continuously strengthen its own R&D capabilities and promote the progress and innovation of process technology. Only with more advanced technology can we better meet the needs of customers and improve market competitiveness. TSMC can invest more resources and talents, continue to make efforts in research and development, and launch more advanced process technologies to meet the changing market demand.
2. Establish close cooperative relations with customers
Building a close working relationship with customers is the key to TSMC's response to this dilemma. By establishing a good cooperative relationship with customers, TSMC can understand customer needs and feedback, and adjust its own production and R&D strategies in a timely manner. Only by establishing a good cooperative relationship with customers can we better meet the needs of customers and increase market share. TSMC can actively communicate with customers and explore more in-depth cooperation methods, such as joint research and development, customized production, etc., to improve customer satisfaction and loyalty.
3. Expand diversified business strategies
In addition to relying on its original business, TSMC can also adopt a diversified business strategy to expand its business scope and market areas. For example, it has entered emerging fields such as the Internet of Things, artificial intelligence, and 5G, where the demand for chips is also increasing. Through diversified business strategies, TSMC can open up new market space and increase its own business revenue and profits**. In addition, TSMC can also consider cooperating with companies in other industries to jointly develop and produce related products to expand its influence and profits.
At present, the predicament faced by TSMC is the result of a combination of factors. Although TSMC is highly competitive in process technology and scale, changes in market demand and the rise of competitors have put pressure on them. To deal with the current predicament, TSMC needs to start from many aspects, including strengthening its R&D capabilities, establishing close cooperative relationships with customers, and expanding diversified business strategies.
However, it is not easy to actually do this. Strengthening R&D capabilities requires a lot of resources and time, building a close relationship with customers requires the joint efforts of both parties, and diversifying business strategies also requires finding the right market opportunities and partners. In addition, TSMC also needs to pay close attention to the development of Chinese mainland, the world's largest semiconductor chip consumer market, because changes in the Chinese market are crucial for TSMC.
To sum up, the embarrassing situation faced by TSMC is not without solutions. By strengthening its R&D capabilities, building close relationships with customers, and diversifying its business strategy, TSMC can find opportunities to break through its challenges. At the same time, TSMC also needs to pay close attention to market changes and changes in customer needs, and adjust its own strategies in a timely manner to remain competitive.