TSMC and ASML turned to the Chinese market and had a showdown with the United States.
Recently, lithography giants such as TSMC have successively shown favor to China, industry analysts say that the reason is that the Chinese market is too critical, and the United States is constantly trying to curb China's semiconductor industry by attracting high-tech companies.
After announcing the mass production of its 3nm chips in Taiwan, TSMC announced soon after it announced that it would build a production base for 28nm chips in Nanjing. There is no doubt that TSMC's first large-scale production with advanced processes in Asia is to win the favor of Asian manufacturers, and the expansion in Nanjing is also clearly aimed at winning chip orders from China.
TSMC has traveled to the United States to build factories, so it has been working hard to learn Xi since 2020. In 2020, TSMC went to the United States to build a factory, and in October 2022, more than 300 core technicians and family members from Taiwan, together with supporting EUV lithography machines, went to the United States one after another to try to express goodwill to the United States, however, the United States gave TSMC subsidies to not even a small part of Intel, coupled with the fact that many American semiconductor companies have reduced orders, TSMC's 7nm and 5nm process production capacity has declined sharply.
U.S. semiconductor companies are doing this because China will cut back its purchases of 90 billion chips in 2022, halving the U.S. chip market shareDue to the reduced efficiency of U.S. chips, in order to reduce costs, it must cut back on expenses and cut back orders to ensure cash flow.
As for the subsidy for chips, it is as low as one percent, indicating that the semiconductors in the United States are not provided by TSMC, and TSMC is also very confident in chip manufacturing in the United States.
ASML's situation is similar to TSMC's, the United States has put pressure on ASML several times to increase import controls on China's lithography machines, ASML did so, but American semiconductor manufacturers did not return the money, but American semiconductor manufacturers have begun to study electron beam lithography machines, wanting to occupy ASML's market.
As ASML's revenue in China is getting less and less, American chip companies are also starting to march into China, and Nvidia and Qualcomm are both producing chips for China and making profits through China's revenue, which makes ASML and other allies very happy, which is why ASML is doing this.
ASML recently said at a conference on its 2022 earnings report that the Chinese market will generate 2.2 billion euros in revenue for the company and is expected to provide 100 lithography machines to ChinaASML executives have previously said they want to work better with China, reminding that there is no justification for the U.S. blockade of lithography machine supply and that China can develop its own high-end lithography equipment.
The move by TSMC and ASML is enough to prove their importance to China, because China's semiconductor industry is in a period of rapid growth, so their chip production has been growing rapidly. In the face of the downturn in the world's semiconductor industry, China's position is becoming more and more prominent, and it is not unreasonable for TSMC, ASML and other companies to take the initiative to seek help from Chinese semiconductor companies out of their own interests.
It can be seen that TSMC and ASML in this case, in order to protect the profits of foreign countries, have chosen to reach a settlement with China, hoping to profit from the Chinese market, so as to ensure the profits of foreign countries, so that the United States understands that they no longer rely on the United States, but to put the interests of the United States first, which will be a heavy blow to the United States.