Sales of EUV lithography machines are sluggish, and TSMC is seeking the Chinese market.
Reasons for the low sales of EUV lithography machines.
1.Technical bottlenecks: Although EUV lithography technology has made significant technological progress, there are still technical bottlenecks in some key areas, which limit its application scope to a certain extent. For example, the stability and reliability of EUV lithography technology still need further research, development, and improvement to meet the needs of the production line.
The high cost of EUV lithography machines is also an important factor affecting its sales. Due to the uniqueness and complexity of its main components, EUV lithography machines are expensive to produce and therefore sell for a high price. This can be an unbearable burden for some small and medium-sized semiconductor companies, so they may prefer traditional lithography techniques.
2) Market competition: With the rapid development of the semiconductor industry, market competition has become extremely fierce. Some emerging companies pose a certain threat to traditional semiconductor companies due to their advantages in cost and technological innovation. These companies are also making progress in lithography, such as by improving the performance of traditional lithography techniques to achieve precision manufacturing below 7 nanometers.
In addition, some lithography raw materials and equipment manufacturers have also begun to explore new directions of lithography technology. These new technologies are more competitive in terms of cost and reliability compared to EUV lithography, thus impacting the market share of EUV lithography.
3) Political environment: Different countries and regions have different support policies for the semiconductor industry, which also has a certain impact on the sales of EUV lithography machines. Some countries are committed to strengthening the development of the semiconductor industry and provide certain support and financial assistance. Conversely, other countries may have unclear policies for the development of the semiconductor industry, or lack effective financial support measures, resulting in a lower demand for EUV lithography machines in the national market.
TSMC's expansion strategy in China.
In order to overcome the problem of weak sales of EUV lithography machines, TSMC is actively seeking a breakthrough and plans to enter the Chinese market. The company has developed a series of strategies aimed at improving its competitiveness and market share in the Chinese market. The following are TSMC's main strategies to expand the Chinese market:
1) Expansion of production capacity: TSMC plans to expand its production capacity in the Chinese market to meet the needs of the domestic market and cope with international competitive pressures. By increasing the number and efficiency of production lines, TSMC will be able to better meet the needs of Chinese customers and maintain a competitive advantage in the fierce market competition.
2) R&D investment: TSMC will increase R&D efforts for 7nm chips to improve product competitiveness and reduce costs. Through continuous technological innovation and R&D investment, TSMC can continuously improve the performance and reliability of its products, thereby attracting more customers to buy its products.
3) Expand the industrial chain: TSMC will actively expand the industrial chain and establish close cooperation with upstream and downstream enterprises to jointly promote the development of the semiconductor industry. Cooperate with enterprises in related fields, such as photoresist, photolithography raw material suppliers, etc., to jointly seek technological breakthroughs and innovations to further improve the level and competitiveness of the entire industry.
Challenges and opportunities for TSMC.
However, TSMC still faces some challenges and opportunities when expanding into the Chinese market. On the one hand, China's semiconductor market is highly competitive, and the market share has been occupied by some local companies, and the technology and cost barriers are high, which may be a huge challenge for TSMC. In addition, the uncertainty of the political environment and changes in regulatory measures may also have an impact on TSMC's business activities.
On the other hand, the huge potential of the Chinese market and China's increasing support for the semiconductor industry have also created opportunities for TSMC's expansion and development in the Chinese market. The huge demand in the Chinese market will bring more business opportunities to TSMC, and China's technological innovation and talent pool will also bring more partners and new development opportunities for TSMC.
Conclusion. Faced with the weak sales of EUV lithography machines, TSMC actively sought a breakthrough and decided to enter the Chinese market. Through strategies such as expanding production capacity, investing in R&D, and expanding the industrial chain, TSMC is expected to achieve sustainable business development. At the same time, while facing many challenges, TSMC also sees the huge opportunities brought by the Chinese market. Only by seizing the opportunity and overcoming the challenge can TSMC remain invincible in the highly competitive semiconductor market.