As the world's leading semiconductor manufacturer, TSMC has always played an important role in the technology field. However, they have recently faced an embarrassing situation: the 7nm process has no one to care about, and they have to cut prices to grab orders. It's a challenge and a pressure. So, why did TSMC's 7nm process fall into such a situation?
First of all, the increasing complexity of chip design and manufacturing is a big reason for this. With the advancement of science and technology, the demand for chips is becoming higher and higher, requiring higher levels of technical capabilities and advanced production equipment. Although TSMC has strong strength in this area, many customers prefer to choose more cost-effective process technologies to meet their own development needs. For example, mature process chips above 28nm occupy an absolute advantage in the market.
Secondly, market competition has also affected TSMC's order volume. There are a large number of semiconductor foundries around the world, and factories, including Samsung, are competing with TSMC for market share. In order to win more orders, TSMC had to compete with other foundries, which led to the emergence of the first war. In such an environment, even if TSMC's process technology is advanced, it is difficult to ensure more orders.
In addition, changes in customer demand are also contributing to the decrease in orders. With the development of technology, customers' demand for chips is also changing. At present, 80% of the chip demand in the market can be met by chips above 28nm, and the demand for advanced processes is mainly concentrated in the most advanced 3nm process. For the 7nm process sandwiched in the middle, the market demand is a little embarrassing. For TSMC, in order to get more orders, it needs to meet the changes in customer demand in a timely manner.
In order to alleviate the current predicament, TSMC has to adopt a strategy of cutting prices to grab orders. They had to reduce production costs, increase production efficiency, and attract customers with more competitive prices. While this strategy could temporarily alleviate TSMC's woes, it is not sustainable in the long run. Because price reductions lead to lower profits, which are an important factor in maintaining the operation and growth of a business.
Faced with the current predicament, TSMC needs to start from multiple aspects to find a way to solve the problem. First of all, they should strengthen their own R&D capabilities and continuously promote the progress and innovation of process technology. Only with more advanced technology can we better meet the needs of customers and improve market competitiveness.
Second, TSMC needs to establish a closer cooperative relationship with customers, understand customer needs and feedback, and adjust its production and R&D strategies in a timely manner. Only by establishing a good cooperative relationship with customers can we better meet the needs of customers and increase market share.
In addition, TSMC can also adopt diversified business strategies to expand its business scope and market areas. For example, they can enter emerging fields such as the Internet of Things, artificial intelligence, and 5G, because of the increasing demand for chips in these fields. Through diversified business strategies, TSMC can open up new market space and increase its own business revenue and profits**.
At present, TSMC is facing severe challenges: the 7nm process is unattended, orders are reduced, and it is forced to adopt a strategy of cutting prices to grab orders. Faced with these problems, they need to be proactive and find solutions to solve them.
In my opinion, TSMC can continue to work hard in the following aspects. First, they can increase R&D investment, continuously improve process technology, and outperform competitors. Only with more advanced technology can we gain a firm foothold in the market and get more orders.
Second, TSMC needs to build closer partnerships with its customers. By establishing a good cooperative relationship, they can better understand the needs of customers, adjust their production and R&D strategies in a timely manner, and provide products and services that are more in line with market demand.
In addition, I think TSMC should also pay more attention to and develop the Chinese mainland market. China is the world's largest consumer market for semiconductor chips, and it has huge potential for TSMC. Strengthening cooperation with Chinese customers and seizing opportunities in the Chinese market will be able to provide new growth points for TSMC.
In short, TSMC's current predicament is not without solutions. By strengthening R&D capabilities, establishing partnerships, expanding market areas and other efforts, TSMC can overcome difficulties and rediscover opportunities for development.