GloballyWafersOEMField,TSMCIt has always been an important player with strong strength. However, a series of recent events have taken placeTSMCThe shock was enormous, causing the situation to take an unexpected turn. This article will dive in**TSMCwithSMICwill also analyze the reasons for this change in the situation and provide an outlook on future development trends.
In the past,ChipsThe manufacturing industry is mainly made up ofIntelwithSamsungand other old brandsChipsDominated by giants, these companies usually adopt the IDM model, that is, the one-stop model, including design, manufacturing, packaging and testing, and sales. Later, with the pureWafersOEMThe emergence of patterns,TSMCRapid rise. This model has been numerousChipsThe favor of design giants, especially in terms of technological advancement, yield rate and stability. In addition,TSMCAlso has more EUVsLithography machine, which can provide more advancedChipsThe production capacity effectively meets the market demand. Therefore,TSMCSoon exceededSamsung, became globalWafersOEMA leader in the industry.
PureWafersOEMThe emergence of the model is globalChipsManufacturing has brought about tremendous change. By refining and specializing manufacturing, companies are able to focus moreChipscore areas such as design and marketing, which improve efficiency and quality. At the same time, pureWafersOEMThe mode is alsoOEMThe company provides more opportunities for cooperation and attracts many customers. TSMCWith its leading edge in technology and good service reputation, it has attracted many people from all over the worldChipsDesign companies have become their first choiceOEMManufacturers.
InTSMCBecome globalWafersOEMAfter the leaders of the industry, it went through a relatively smooth period. Apple asTSMCThe largest customer, for:TSMCcontributed about 25% of revenue, andHuaweiAs the second largest customer, it is also growing rapidly. However, for almost two years,TSMCThe days are getting harder and harder. First of all, globalChipsThere was a downward trend in the market, from undersupply to oversupply. In addition,United States**Frequent revisionsChipsRelevant provisions, rightTSMC's performance had a negative impact. What's more,TSMClostHuaweiThis important customer, although the American company filled part of the order gap, but the consequences are becoming more and more serious.
In recent years, the worldChipsThe market has changed dramatically. withArtificial intelligence, the rapid development of emerging technologies such as the Internet of Things and 5G, rightChipsdemand is also showing an explosive growth trend. However, due to the limitations of the global ** chain,ChipsIn general, it is unable to meet the market demand, especially in some high-endChipsIn terms of manufacturing process. This has led to an imbalance between supply and demand in the market, making someOEMManufacturers are faced with the dilemma of excess capacity. TSMCAs the world's largestWafersOEMOne of the manufacturers, naturally, became one of the most affected.
Recently,TSMCAccording to the released financial report, its revenue in November fell by 7% year-on-year5%, down 153%。Capacity utilizationContinued decline, especially7nmprocess,Capacity utilizationIt was only about 50%, and the contribution to revenue dropped to 16%. This has attracted a lot of attention and discussion in the industry. It is generally believed that asWafersOEMLeading enterprises in the upstream of the industryTSMCMarket volatility should be slow and lagging. However,TSMCBut in a short period of time, it encountered a huge dilemma, which attracted people's attention.
Capacity utilizationThe slide, rightTSMCIt's a very serious challenge. BecauseWafersOEMThe industry is an industry with high investment and high technology threshold, and the upgrading of equipment and technology requires huge capital investment. However, with the decline in market demand and the decrease in orders,TSMCCapital expenditures had to be drastically slashed, and even planned expansion projects were cancelled. At the same time,TSMCAlso with key equipment ** business such asasmlDiscuss and delay the delivery of the equipment as much as possible. In addition, in order to improve competitiveness and easeCapacity utilizationSlip Problem,TSMCIt was also decided to lower the flag7nmOEM**, trying to attract more customers.
InHuaweiSelf-developed KirinChipsAfter the return, the mainlandChipsThere has been a breakthrough in the industrySMICIn China, the proportion of revenue is increasing, and the advantages are getting bigger and bigger. In addition, the mainlandChipsThe progress of the process is impressive, but the details are still not publicly available. TSMCPositive action was taken in this regard, reducing7nmOEM**, trying to win Chinese enterprise customers. This reversal was unexpected by manyWafersManufacturing this lofty field,TSMCThey also began to cut prices to grab customers. Foreign media also said that this time the situation has really changed dramaticallyTSMCWe are also aware of the importance of mainland customers. However, the timing has been missed because of the continentChipsThe industry has achieved a breakthrough, and Chinese enterprises will definitely choose a reliable local ** chain. SMICIt has becomeTSMCand its position in the upstream of the industrial chain is gradually increasing.
SMICAs the largest in Chinese mainlandWafersOEMOne of the manufacturers has made very significant progress in recent years. The company has strong R&D capabilities in advanced processes, and has made a series of important breakthroughs, such as 28nm14nmand 12nm and other successful processes. In addition, the company is also actively cooperating with major domestic and foreign companiesChipsThe cooperation of design enterprises has attracted many customers. SMICThe rise of the pairTSMCIt has had a great impact and has lost its absolute advantage in the Chinese market. InTSMCIn the context of price reduction to snatch customersSMICIt is expected to benefit from this and accelerate its market share growth.
TSMCAs globalWafersOEMThe leader of the industry has experienced many difficulties and challenges in recent years. The imbalance between supply and demand in the market, the adjustment of U.S. policies, etcHuaweiand other factors such as the departure of important customersTSMC's performance declined. At the same time,SMICThe rise at the technical and market level is also rightTSMCIt constitutes a huge competitive pressure. TSMCTrying to alleviate by grabbing customers with price cutsCapacity utilizationThe problem of slipping. However,SMICThe rapid development momentum has aroused the attention of the industry. With Chinese mainlandChipsThe continuous rise of the industry,SMICand other nativeOEMManufacturers will becomeTSMCimportant competitors. In the future,WafersOEMThe competition in the industry will be more intense, and the market landscape may also change further.