As the world's leading semiconductor manufacturing company, TSMC has always occupied an important position in the semiconductor industry with advanced process technology and efficient production equipment. However, in recent years, they have faced some challenges and pressures: the 7nm process is unused, orders have decreased, and they have been forced to cut prices to grab orders. There are many reasons for this phenomenon, such as market competition, changes in customer needs, etc. Faced with this dilemma, TSMC needs to adopt various strategies to deal with it, including strengthening R&D capabilities, building close customer relationships, and diversifying operations.
Market competition is one of the main reasons for the decrease in TSMC's orders. Nowadays, there are a large number of semiconductor foundries around the world, and in addition to TSMC, Samsung and other factories also have the capacity of 7nm and 3nm mass production, and each factory competes for a limited market share. In order to win more orders, TSMC had to engage in ** battles with other companies.
At the same time, the change in customer demand for chips is also one of the reasons for the decrease in TSMC's orders. With the development of technology, 80% of the chip needs in the market can be met by mature processes above 28nm. For some customers such as mobile phones and computers that need advanced technology, they prefer to use the most advanced 3nm chip process. In such a situation, the 7nm process sandwiched in the middle is a bit embarrassing, because it has neither cost and ** advantages, but also advanced performance and power consumption advantages, resulting in reduced customer demand.
In order to cope with the dilemma of reduced orders, TSMC was forced to adopt a strategy of cutting prices to grab orders. They need to reduce production costs, improve production efficiency, and attract customers with more competitive prices. While this strategy can alleviate the dilemma in the short term, it is not sustainable in the long term, as price reductions can lead to lower profits, which are important to keep a business running and growing.
(1) Strengthen R&D capabilities
TSMC can continue to strengthen its own R&D capabilities and continuously promote the innovation and progress 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 in R&D and establish close cooperation with scientific research institutions, universities, etc., to jointly promote technological innovation.
(2) Establish close customer relationships
TSMC needs to build closer partnerships with customers to understand their needs and feedback. Only by establishing a good cooperative relationship with customers can we better meet the needs of customers and increase market share. TSMC can conduct in-depth communication with customers to understand their development strategies and changes in demand, and adjust their production and R&D strategies in a timely manner.
(3) Diversification
In addition to chip foundry, TSMC can expand its business scope and market areas. For example, they can enter 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**.
Overall, TSMC's current predicament is the result of a combination of factors. To solve these problems, TSMC needs to start from many aspects, including strengthening R&D capabilities, building close customer relationships, and expanding business scope and market areas. In addition, TSMC also needs to pay attention to the development of Chinese mainland, the world's largest semiconductor chip consumer market, only in this way can it better respond to market competition and changes in customer demand. Through continuous efforts and innovation, we believe that TSMC can overcome difficulties, maintain its leading position, and continue to succeed in the semiconductor industry.