As the world's leading semiconductor manufacturer, TSMC has always occupied a pivotal position in the technology field. Recently, however, TSMC has found itself in an awkward situation: its 7nm process is facing the dilemma of no one using it, and it is forced to cut prices to grab orders. This is undoubtedly a challenge and pressure for a strong enterprise.
Although TSMC's process technology has advanced to 3nm, the number of orders is not as large as expected. At the same time, their 7nm process also fell into the embarrassing situation of not being used by customers. The reasons for this are manifold.
First of all, as the semiconductor industry grows, the design and manufacture of chips becomes more and more complex, requiring foundries to have a higher level of technical capabilities and production equipment. Although TSMC has strong strength in these aspects, many customers will only choose more cost-effective chip process technology to meet their own development needs, and mature process chips above 28 nm are obviously more advantageous.
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, such as Samsung, which can also do mass production of 7nm and 3nm, and these factories are vying for market share. In order to get more orders, TSMC has to compete with other foundries, which will 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, customer demand is also one of the reasons for the decrease in TSMC orders. With the development of technology, customers' demand for chips is also changing. 80% of the chip needs in the market can be met with chips above 28 nanometers, and mobile phones, computers and other advanced processes are required by the most advanced 3 nanometer processes. For the 7nm process sandwiched in the middle, the demand is a bit awkward. Some customers focus on cost and power optimization, while others focus more on performance and power optimization. This change in demand is a huge challenge for TSMC.
Although cutting prices and grabbing orders can temporarily alleviate TSMC's predicament, it is not sustainable in the long run. Because price reduction will lead to a decline in profits, and profits are an important guarantee to maintain the operation and development of enterprises. Faced with the current predicament, TSMC needs to find more sustainable solutions.
1. Strengthen R&D capabilities and promote the progress and innovation of process technology
In order to meet the needs of customers, TSMC needs to strengthen its own R&D capabilities and continuously promote the progress and innovation of process technology. Only with advanced technology can we better meet the needs of customers and improve market competitiveness. TSMC can increase investment in R&D for the 3nm process and strive for commercial use as soon as possible, so as to take the lead in future market competition.
2. Establish close customer relationships and understand customer needs and feedback
TSMC needs to build closer cooperation with customers, understand customer needs and feedback, and adjust its 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 open customer feedback channels, communicate with customers on a regular basis, and keep abreast of market changes and changes in customer needs, so as to quickly adjust its production and R&D strategies.
3. Expand the business scope and market area, and adopt diversified business strategies
In addition to focusing on the semiconductor foundry business, TSMC can also 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 cooperate with companies in other fields to jointly develop new products and technologies to improve its competitiveness.
The dilemma faced by TSMC is the result of a combination of factors, and solving these problems requires a multi-faceted approach. Strengthening R&D capabilities, building close customer relationships, and expanding business scope are key strategies for TSMC to cope with this dilemma. Moreover, TSMC also needs to pay close attention to the development of Chinese mainland, the world's largest semiconductor chip consumer market, because the Chinese market's demand for chips is growing rapidly and the market potential is huge. Only by maintaining a close connection with market demand can we better respond to market competition and changes in customer needs.