TSMC is known as a globally renownedChipsOEMEnterprises, which have always been mobile phones and computers, etcConsumer electronicsmainOEMManufacturers. However, the recent news has been surprising, with TSMC announcing a reduction in mature processes and7nmProcessChipsofOEM**。Foreign media have commented one after another, saying7nmChipsNobody wants it anymore. This news has attracted widespread attention, and people are curious about why TSMC is making such a price reduction move.
Mature processChipsIt refers to the process at 28nm and aboveChips, mainly used in home appliances, medical equipment andNew energyautomotive and other fields. Due to these areas pairsChipsThe performance requirements are not high, so the mature process is adoptedChipsAble to better meet market demand. Still, inChipsOEMareas, including:SMIC, Hua HongSemiconductorsUMCand other enterprises, including manufacturers, already have a considerable level of technology in terms of mature processes. As a result, TSMC does not have a clear advantage in terms of cost and yield. In order to win more orders and improve capacity utilization, TSMC chose to reduce the mature processChipsofOEM
1. The performance lags behind the process below 5nmChips7nmProcessChipsIt is mainly used in mobile phones and computersConsumer electronicsfield, currently only TSMC andSamsungYesOEMProduce. However, with processes below 5nmChipscomparatively,7nmThe performance of the process is somewhat backward, and it is difficult to meet the mainstream level of the market.
2. The cost is higher and the demand is decreasing: with the process of 28nm and aboveChipscomparatively,7nmThe process is technically difficult and costly due to performance upgrades. Moreover,New energyIt is basically not used in automobiles and home appliances7nmProcessChips。This leads to:7nmProcessChipsof the market demand declined.
3. Fierce competition:SMICIt is a company with the support of the Chinese marketChipsOEMEnterprises are accelerating R&D7nmand 5nm processChips。If7nmProcessChipsThe market demand is reducedSMICIt is possible to suffer from lower than expected earnings. However, onceSMICAfter completing the technological breakthrough, it is likely to ship in large quantities in the Chinese market, so as to gain the ultimate competitive advantage.
1. Troubled by the loss of the Chinese market: due to the loss of support from the Chinese market, TSMC's7nmChipsNow facing an awkward situation. SMICWith the endorsement of the Chinese market, part of the artificial intelligenceChipsIt is also currently adopted7nmProcessOnceSMICBreaking through the technical difficulties, it is possible to scale up in the Chinese market**.
2. Risk of production line closure: the opening and closing of the production line forChipsOEMThis is a critical decision for businesses. Once the production line is shut down, it will be extremely difficult and costly to restart, including factors such as equipment attrition. In order to avoid the risk of production line closure, TSMC had to choose to reduce prices to win orders.
TSMC reduces the maturity process and7nmProcessChipsofOEM**, in order to win more orders and improve capacity utilization. However,7nmProcessChipsThe decline in market demand forSMICmay have some adverse effects. SMICAs a person who wants to enter the field of advanced processesChipsOEMEnterprise,7nmand 5nm process is the way to go. However, TSMC's technology and cost competitiveness are relatively weak, whileSMICIt is actively increasing research and development efforts. This made some foreign media saySMICProbably not expected7nmChipsof the market demand declined.
Finally, the market competition never endsChipsOEMEnterprises need to continue to innovate and continuously improve their technology to cope with changing market demands and competitive pressures. Only with excellent technology and high efficiencyCost controland flexible market response strategies, these companies can succeed in the fierce market competition.