As a world-renowned chip foundry giant, TSMC has won the favor of many international chip giants with its leading technical strength and excellent chip foundry technology. However, with the US crackdown on technology companies such as Huawei and the issuance of chip bans, TSMC's fortunes have changed. China's Huawei, which was once TSMC's second largest customer, had to stop foundry and draw a line with it because of the impact of the US ban. Even at the invitation of the United States, TSMC plans to build a factory in the United States, which has made many domestic technology companies realize the true face of TSMC. China's self-developed semiconductor companies such as SMIC have also accelerated the development and layout of the domestic semiconductor industry, making TSMC's orders gradually decreasing and unable to obtain China's chip orders. Faced with this situation, TSMC had to reduce 7nm process orders**, which foreign media said was a sudden reversal of the situation.
In response to this situation, we can carry out two aspects** from two aspects: declining market demand and intensified competition.
1. The impact of declining market demand on TSMC's orders
In the context of the global economic downturn, the demand for many electronic products is decreasing, which will naturally directly affect the demand of the chip foundry market. With the rise of domestic semiconductor companies such as SMIC, the domestic chip market has gradually achieved self-sufficiency and reduced its dependence on TSMC. This has left TSMC with fewer and fewer orders. In order to maintain market share and profitability, TSMC had to take measures to reduce 7nm process orders**.
2. Intensified competition is a challenge to TSMC
As SMIC and other domestic technology companies accelerate their development and layout in the semiconductor field, TSMC is facing increasingly fierce competition. These domestic companies continue to make breakthroughs in technology research and development and manufacturing, and gradually narrow the gap with TSMC. In the face of increased competition, TSMC needs to do more to maintain its market position.
1. Technological innovation and cost control
In the face of rising costs and uncertainties in market demand brought about by technological progress, TSMC needs to continue to carry out technological innovation to reduce costs and improve competitiveness in the chip foundry process. Only by continuously integrating innovative elements can we occupy a dominant position in the fierce market competition.
2. Expand the market in Chinese mainland
TSMC needs to recognize the importance of the Chinese mainland market, and actively expand the mainland market and expand its customer base. Through cooperation with Chinese science and technology enterprises, we will jointly develop the market and achieve mutual benefit and win-win results. Only by truly integrating into the Chinese market can we cope with the uncertainty of the future market.
For TSMC, the reduction of 7nm process orders** is only a temporary relief from market pressure, not a long-term solution. To maintain a leading position in the future competition, TSMC needs to continue to work hard in technological innovation and cost control, and actively expand the Chinese mainland market. Only by actively responding to the challenges and changes in the market can we maintain a competitive advantage in the global semiconductor industry.
The author believes that the dilemma and transformation faced by TSMC are not only the problems faced by its own development, but also reflect the current status and trend of the global semiconductor industry. With the advancement of technology and the development of the market, the semiconductor industry is facing increasing pressure and challenges. In this context, TSMC needs to keep pace with the times, continue to carry out technological innovation and market expansion in order to maintain its competitive advantage in the future competition. At the same time, we should also see that the Chinese mainland market is an important part of the development of the global semiconductor industry, and only by truly integrating into the Chinese market can we occupy a more advantageous position in the global layout.
The author believes that the future development of the semiconductor industry is still full of hope and challenges, and only by keeping up with the pace of technological development and continuous innovation can we achieve greater breakthroughs and development in this highly competitive industry.