Can t get the Chinese chip order, TSMC s 7nm process price cut, foreign media It s too late!

Mondo Technology Updated on 2024-01-31

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Reading guide:Can't get Chinese chip orders,TSMC7nm process price reduction,Foreign media:It's too late!

With the rapid development of the global semiconductor industry, TSMC, as one of the leaders, has been leading the market with its excellent chip foundry technology. However, under the US crackdown on Chinese technology companies, especially sanctions on companies such as Huawei, TSMC's glory also seems to have begun to fade. Recently, TSMC announced a reduction in 7nm process orders** by 5-10%, a move that has attracted widespread attention in the industry. Some foreign media commented that it was too late;And what's going on here?

1. TSMC's brilliance and challenges.

As the world's largest chip foundry, TSMC has a pivotal position in the semiconductor field. With advanced process technology and efficient production capacity, TSMC has won the favor of many internationally renowned companies such as Apple, Qualcomm, and Intel. However, in the context of the United States imposing sanctions on Chinese technology companies, TSMC also has to face serious challenges.

Huawei used to be TSMC's second-largest customer, bringing tens of billions of orders to TSMC every year. However, under the suppression of the United States, Huawei lost the best in high-end chips, and TSMC also lost this important customer. For TSMC, this is undoubtedly a huge blow. However, with the rise of domestic companies such as SMIC and the increasing support of the state for the semiconductor industry, China's chip industry has gradually achieved independent control. As a result, TSMC's share of the Chinese market is gradually decreasing, and it is even facing the risk of being squeezed out of the market.

Second, the helplessness and dilemma behind the price reduction.

In the face of competitive pressure in the Chinese market and unable to get orders for Chinese chips, TSMC also had to adopt a price reduction strategy to maintain market share. In the case of insufficient 7nm capacity utilization, TSMC's 7nm'Process chip foundry orders fell by about 5-10%;However, price reductions are not a long-term solution, especially in a technology-intensive, capital-intensive sector like the semiconductor industry. The price reduction will not only reduce TSMC's profit margins, but may also affect its R&D investment and technological innovation capabilities. In the long run, this will undoubtedly have a negative impact on TSMC's competitiveness.

In addition, price reductions may also trigger chaos and vicious competition in the market. Once the war starts, the entire industry may fall into the predicament of declining profits. For TSMC, this is undoubtedly a huge risk.

3. TSMC's response strategy and prospects.

In the face of the current predicament, TSMC needs to actively adjust its strategy to meet the challenges. First, TSMC can increase R&D investment and technological innovation in the field of high-end chips to maintain its leading position in the world. By continuously improving the level of process technology and production capacity, TSMC can win the trust and support of more high-end customers.

Second, TSMC can seek cooperation and win-win results with domestic and foreign enterprises. In the global semiconductor industry chain, cooperation is an important way to achieve common development. By establishing close cooperation with Chinese companies and jointly developing new technologies and products, TSMC can further expand the Chinese market and achieve mutual benefit and win-win results.

Finally, TSMC can also focus on development opportunities in emerging markets and emerging application areas. With the rapid development of emerging technologies such as 5G, Internet of Things, and artificial intelligence, the semiconductor industry will usher in new growth points. TSMC can actively deploy these emerging fields to seize market opportunities and achieve sustainable development.

In short, if TSMC wants to maintain its leading position in the global semiconductor industry and achieve sustainable development, it cannot do without China, the world's largest chip consumer marketAt present, TSMC is facing severe challenges and dilemmas, but as long as it actively adjusts its strategy for the mainland market, increases technological innovation and seeks opportunities for win-win cooperation, it is still expected to return to the mainland market. For China, the independent and controllable semiconductor industry is an important support for the future development of science and technology. We need to continue to increase support for the semiconductor industry and invest in technological innovation, so that we can get rid of dependence and become independent and strong.

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