As the world's leading chip foundry, TSMC has won orders from many chip giants and made huge profits in the past few years with its advanced process technology. However, with the U.S. crackdown on Chinese technology companies and Huawei's chip ban, TSMC's fortunes have taken a major turn. In the past, Huawei was TSMC's second largest customer, bringing 30 billion worth of orders to TSMC every year. However, under the intervention of the United States, TSMC was forced to stop manufacturing Huawei's chips, and even planned to build factories in the United States, which also made many domestic technology companies begin to recognize the true face of TSMC - "American Semiconductor Company".
In recent years, with the rapid development of domestic technology companies such as SMIC in the semiconductor field, the domestic semiconductor industry has gradually achieved "self-sufficiency". This has also led to a gradual decrease in TSMC's orders, and it is no longer able to obtain orders from the Chinese chip market. In order to cope with the decline in market demand and fierce competition, TSMC had to reduce the ** of 7nm process orders, with a decrease of between 5-10%.
1. Declining market demand and intensified competition: In the context of the global economic downturn, the demand for many electronic products is decreasing, which naturally affects the chip foundry market. At the same time, the rise of domestic technology companies such as SMIC has made TSMC face increasingly fierce competition.
2. The rising cost of technological progress: With the continuous improvement of chip process technology, the difficulty and cost of manufacturing are gradually increasing. This is a big challenge for TSMC, which needs to work technological innovation and cost control to maintain a competitive advantage.
3. Uncertainty of market demand changes: Due to the acceleration of the upgrading of electronic products, the changes in market demand are also more rapid and uncertain. This has put a lot of pressure on the semiconductor industry, and it also requires TSMC to be flexible and adapt its product and order strategy in a timely manner.
TSMC's decision to lower orders for the 7nm process is only a temporary relief of market pressure, not a long-term solution. To gain an advantage in the future competition, TSMC needs to continue to work technological innovation and cost control. At the same time, TSMC also needs to clearly recognize the importance of the Chinese mainland market and actively expand its mainland customer base. Only in this way can we cope with the uncertainty of the future market and maintain TSMC's leading position.
While facing new challenges, TSMC also needs to think about how to adjust its development strategy from over-reliance on foreign orders to more attention to the development of the domestic market. As one of the world's largest consumer electronics markets, China has huge potential and demand. Actively entering the Chinese market and cooperating with domestic enterprises for mutual benefit and win-win results will be the key to TSMC's future development.
Summary: The challenge facing TSMC is not an isolated case, but a problem facing the semiconductor industry as a whole. The rising cost of technological advancement and the uncertainty of market demand make it necessary for companies to constantly adjust their strategies and find new development opportunities. For TSMC, the reduction of 7nm process orders is just a way to temporarily ease market pressure, and it is time to strengthen technological innovation, expand the market and strengthen internal management. Only in this way can we maintain a leading position in the fierce competition and achieve lasting development.