With the continuous improvement of chip manufacturing technology, TSMC, as the world's leading chip foundry, was once at the forefront of the industry and gained a good reputation and market share. However, in recent years, with the gradual implementation of the U.S. restrictions on the global semiconductor industry, TSMC is facing a huge dilemma. The U.S. requires companies that use its technology to comply with its export control rules, which makes it impossible for TSMC to compete with its peers as it has in the past, and to win more customers by leading the technology development. As a result, TSMC has ushered in a difficult and struggling period.
1. Restricted OEM business
TSMC had to stop manufacturing chips for Chinese companies on the Entity List in accordance with U.S. regulations, resulting in a significant reduction in the number of Chinese companies among its foundry customers. Huawei, TSMC's second largest customer, also had to look for other solutions. The return of Huawei's self-developed Kirin chips has further deepened TSMC's predicament, and the performance of Kirin chips is not inferior to TSMC's foundry chips, which means that TSMC will lose more Chinese enterprise customers.
In addition, in order to expand business cooperation with American companies, TSMC has to face the problem of declining capacity utilization. When the chip market situation turned from a shortage of chips to a surplus, American customers began to reduce chip foundry orders, resulting in a serious decline in TSMC's capacity utilization. Especially in the 7nm process, the utilization rate once dropped to 70%, and it is even rumored that it has dropped to less than 50% this year. In order to alleviate the problem of declining capacity utilization, TSMC had to cut prices to grab orders in order to increase profits.
2. The dilemma of advanced manufacturing process
TSMC has been actively pursuing advanced process technology, and now it has advanced to 3nm. However, after Apple's mobile phone uses 3nm chips, it has not achieved the expected results, and the sales volume is even inferior to that of mobile phones equipped with Huawei Kirin chips. This has raised questions about TSMC's advanced process technology, and although TSMC has invested a lot of money and time in the research and development of 3nm chips, it has not received enough customer recognition and support. At the same time, Apple is only willing to pay half of the cost of 3nm chips, which makes TSMC's advanced process further troubled.
3. The problem of building a factory in the United States
Tempted and pressured by the United States, TSMC had to relocate its factory to the United States to meet its requirements. However, the move did not pay off as expected. Not only was TSMC unable to obtain the promised chip subsidies, but it was also subject to more restrictions and was required to build another packaging and testing plant. The high cost of building a factory in the United States has made TSMC face huge business problems and can only postpone mass production for one year.
The predicament encountered by TSMC is actually a huge challenge facing the global chip manufacturing industry. The restrictive policies of the United States have made it impossible for global giants like TSMC to be immune, and they have to seek breakthroughs and solutions. The globalization pattern of the chip manufacturing industry has undergone fission, and enterprises in all countries are facing huge uncertainties and risks.
Although TSMC is currently in a difficult situation, we cannot ignore its accumulated technological strength and innovation capabilities. As the world's leading chip foundry, TSMC still has a strong competitiveness and market position. With the continuous development of technology and the promotion of innovation, TSMC is expected to find a way to break the game and regain its competitive advantage.
In addition, the emergence of TSMC's predicament is also a warning to the global chip manufacturing industry. Under the pattern of globalization, enterprises in various countries need to respond more carefully and find a path to sustainable development. At the same time, strengthening technological innovation and independent research and development, and reducing dependence on external technology are also the key to solving current problems.
In this highly competitive industry, instead of being stuck in a difficult and embarrassing situation, companies should change their thinking and open up new development directions. Only by strengthening cooperation and breaking down limitations can we stay ahead of the competition in the future and contribute to the development of the entire industry. After all, as the core of modern science and technology development, chip manufacturing cannot be ignored in its importance, and all parties need to work together to achieve healthy development.