Throwing $140 billion in a short period of time, the truth about TSMC's factory construction **, the situation may be reversed.
TSMC is very busy, busy building factories everywhere.
According to reports, TSMC held a relocation ceremony in the United States and is expected to invest $40 billion to build a factory, which will be completed and put into operation in 2024, when it will directly produce and manufacture 4nm process chips.
TSMC is also officially building a 3nm chip factory next to the plant, which is expected to start production in 2026.
At the 3nm chip commissioning ceremony, Liu Deyin also officially announced that he would invest more than $60 billion to expand the production capacity of 3nm chips, and would use 18 factories in Taiwan Province, China as the main production base for 5nm 3nm chips.
At the same time, Liu Deyin also said that he will continue to invest in Taiwan Province, which will have more production capacity, especially advanced chip processing capacity, because the 2nm 1nm chip factory was selected in Taiwan Province and opened a 2nm chip factory.
Another point is that TSMC said that its capital expenditure in 2023 will reach $40 billion, mainly for expanding the production capacity of advanced process chips, and partly for the research and development of advanced processes.
This means that TSMC has spent more than $140 billion in a short period of time, most of which is used to build advanced chip production lines, mainly in Taiwan Province.
In the case of overcapacity of advanced process chips, why TSMC still invests more than 140 billion US dollars to build a factory, and now the truth is revealed.
First of all, the overcapacity of advanced process wafers mainly refers to the overcapacity of 7nm, 5nm and other wafers. 3nm is a new process node with huge improvements in both performance and power consumption.
The data shows that the performance of 3nm chips has increased by more than 11%, and the energy consumption has been reduced by up to 45%.
Liu Deyin said that TSMC's 3nm chip production capacity is currently in short supply, and almost all of the main production capacity is used by Apple, and orders will be placed from manufacturers such as NVIDIA, Intel and AMD, and the product market size is expected to reach 1$5 trillion.
TSMC's revenue in 2022 is expected to reach $76 billion, which is a strong indication of the strong demand for 3nm chips compared to the market capitalization of $1.5 billion.
Second, TSMC is building a factory in the United States, mainly to get more orders for American chips.
After the United States revised its regulations on integrated circuits several times to require more integrated circuits to be produced and manufactured locally, manufacturers such as Apple have said that they will purchase integrated circuits locally.
In addition, some semiconductor equipment companies in the United States have also been affected, and TSMC naturally wants to build factories in the United States in order to order chips from the United States and equipment, blocking some chip orders in the United States.
In addition, Samsung and Intel have a large number of factories in the United States, which increases the competitive pressure on TSMC, so building factories is undoubtedly a good choice.
Finally, due to Zhang Zhongmou's warning, TSMC continued to invest more than $60 billion to build factories in Taiwan Province after building a factory in the United States, and used Taiwan Province as the main manufacturing base for 3-nanometer chips.
Zhang Zhongmou has always opposed the construction of factories in the United States, believing that the lack of industrial chains, wafer talents and imperfect industrial chains in the United States will lead to an increase in TSMC's costs, and TSMC's construction of factories in the United States will undoubtedly fail.
This time, TSMC invested more than $60 billion to build a factory in Taiwan Province, which is far larger than that of the United States, with the aim of neutralizing and reducing costs in order to obtain more profits and support TSMC in developing more advanced processes.