Five months after the launch of Huawei Mate60Pro, the pressure on TSMC inductors has increased!
Huawei contributes more than 30 billion yuan in annual turnover to TSMC and continues to grow rapidly, but changes in chip manufacturing rules have reduced this figure to zero.
Liu Dening said that the loss of Huawei's orders will not affect TSMC's profitability, and the company will not use non-American technology to build chip production lines.
Chinese mainland's inability to produce advanced chips will inevitably lead Huawei to buy chips from Qualcomm and other companies in the United States, and orders will eventually flow to TSMC.
However, in just three years, the Kirin 9000s chip has been localized, and Bloomberg and others have confirmed that the Kirin 9000s chip has reached or approached the 7nm level, and the performance is comparable to Qualcomm's 5nm chip, the Snapdragon 888.
Huawei's choice of the name Kirin 9000s may also indicate that it is on par with the Kirin 9000 chip.
On top of that, models such as the Huawei Mate60 Pro with Kirin 9000s chips have been sold out, sales have far exceeded expectations, and the out-of-stock phenomenon continues, which will drive Huawei's sales to grow rapidly, reaching about 250 billion yuan in the fourth quarter of 2023.
Five months after the release of the Huawei Mate 60Pro, TSMC has expressed concern.
First, TSMC has twice postponed the mass production of chips in the United States, delaying the production of 4nm and 3nm chips, the latter possibly until 2028.
With the launch of the Huawei Mate60Pro, Huawei has completely abandoned Qualcomm's high-end chips on all mid-to-high-end models in favor of Kirin chips.
Qualcomm**, China's chip shipments will decrease by more than 40 million to 60 million pieces by 2024.
TSMC's advanced manufacturing capacity such as 7nm is already in surplus, and with chips such as Huawei's Kirin 9000 being domestically produced and imported, TSMC will naturally continue to further reduce excess capacity.
Second, investment and some lithography orders fell sharply, with ASML saying there was overcapacity in advanced technology, with new lithography orders down 40% year-over-year.
TSMC was once ASML's largest customer and the largest supplier of more than half of its EUV lithography products, but is no longer active in the NA EUV lithography space.
The first NA EUV lithography systems have been delivered to Intel, and six of the 10 production capacities planned to be achieved by 2024 will be produced for Intel.
In fact, TSMC is downgrading 7nm process technology** to win more orders, but increasing 5nm process technology** to generate more sales and profits.
Finally, TSMC's direction of development has also changed, as indicated by the resignation of Liu Deren, who wants Wei Zejia to take over as chairman.
Wei Zhejia said that more attention should be paid to the domestic market, new energy vehicles have brought huge opportunities to mature chip technology, and this opportunity is not limited to smart phones, China is the world's largest new energy vehicle production and sales country, and personally led the team to visit key domestic customers He said.
Wei Zejia also explained that her roots are in Taiwan and she is actively applying for permanent residency.
On top of that, Zhang Zhongmou has unexpectedly advocated a chip war against China, recognizing that advances made by Huawei and other domestic industrial networks also pose a threat to TSMC.
After all, Zhang Zhongwu once thought that domestic manufacturers such as SMIC were at least five years ahead of TSMC, but now 75% of SMIC's orders come from domestic manufacturers.
ASML has also fulfilled all lithography orders prepaid by domestic manufacturers, including orders for equipment such as the 2000i, which brings chip processes down to 5nm.
SMIC has already completed the development of the 7nm process, launched the 5nm process, and independently developed N+1 and other process technologies.