A glorious turning point: the rise of Chinese chips, TSMC and ASML are gradually dimming.
TSMC reported second-quarter earnings rising again, reaching an all-time high, but TSMC can still afford the high production expenses of chip foundries as major U.S. chip manufacturers reduce their supply of TSMC electrode ultraviolet lithography and ASML's expected shipments are lowered.
As we all know, TSMC's top ten largest customers are all American semiconductor companies, and TSMC has provided huge revenues for American companies Apple (Apple), while AMD and Nvidia have significantly reduced their revenues, making TSMC very profitable.
TSMC's number one customer is Apple, which accounts for 26% of TSMC's revenueHowever, the iPhone 14 only has two Pro models with the new A16 chip, and the other two use the existing A15 chip, which makes the first iPhone 14 release likely to decline, so the company cut its order for the A16 chip.
Similar to AMD, Nvidia has been hit hard by a drop in PC shipments. Nvidia's strong demand for graphics cards in the digital currency market is also cooling;Qualcomm has lost its leading position in the world;Since mobile phone shipments have been declining for two consecutive months, the number of orders placed by those chip makers for TSMC has also declined.
TSMC received fewer orders, which also affected semiconductor equipment manufacturers ASML, ASML's three largest companies: TSMC, Samsung, Intel, TSMC is the largest user, because TSMC accounts for 90% of the revenue of the entire advanced manufacturing industry, TSMC received a small number of lithography machines, and the demand for high-end lithography machines is not large, ASML Previously, there will be 55-40 EUV lithography machine sales.
As the demand for advanced processes continues to decline, TSMC has gradually returned to control of mature processes in order to ensure stable revenue, and TSMC has previously called on the industry to use 40 nm and later below 40 nm processes, because 40 nm and later processes are more cost-effective, so TSMC will continue to expand 28 nm production capacity.
For semiconductor manufacturers, the current global consumer electronics industry is sluggish, and cost reduction has become a top priority, and it is not surprising that TSMC, which has the most complete process technology, has turned to focus on existing process capabilities.
In terms of **, China has an absolute upper hand in chip production, because China's semiconductor production technology has reached 14 nm, and its production capacity accounts for 70% of China's total chip demand;In fact, most of China's semiconductor technology is still stuck at 28 nm or lower, while BYD has a 90 nm process, and China is one of the top ten wafer factories in the world, but so far, it is only 65 nm.
China's semiconductor manufacturers, the process is already quite advanced, but due to the cheapness of the first time, many manufacturers will entrust the chip to them, China's three in 2021 operating income growth rate, has surpassed TSMC, and now, as chip manufacturers have also begun to consider production costs, China's three giants are expected to make greater profits through the advantages of the first.
It can be said that with the decline of the consumer electronics industry, the entire semiconductor industry is going downhill, and the first thing they have to do is to reduce costs, while China's chip manufacturers have regained the favor of the market, and have been jokingly called "from the traditional advanced process to the reverse process" by the industry, and the ultimate benefit is the semiconductor manufacturers with cost advantages.