As we all know, TSMC is the world's largest chip foundry, occupying more than 55% of the global market share, and its technology is in the leading position in the industry, and has launched the 3nm process.
Especially in terms of advanced technology, TSMC's performance is even more outstanding. According to U.S. statistics, 90% of chips below 7 nanometers are produced by TSMC, which can be described as an absolute market monopoly.
Although TSMC is a Taiwanese company, it actually has its roots in China, and even has a factory in Nanjing, and has many Chinese customers.
However, the current situation is that TSMC is increasingly dependent on the US market, and already 72% of its revenue comes from the US. In other words, the relationship with Chinese mainland seems to be a bit distant.
Not only revenue, TSMC is also dependent on the United States for its technology and equipment. Therefore, it can be said that the United States has firmly controlled the lifeblood of TSMC, and TSMC no longer has much initiative.
In the past, TSMC's U.S. customers did not contribute very much, accounting for only about 55-60%, while Chinese mainland contributed more than 20-25%. However, with the intervention of the United States, the situation changed.
After losing such an important customer as Huawei, TSMC's orders in Chinese mainland have decreased significantly, while American customers such as Apple, Qualcomm, AMD, Broadcom, Nvidia, etc. have increased a lot.
According to the data, in the fourth quarter of 2023, North America accounted for 72% of revenue, Asia Pacific accounted for 8%, China accounted for 11%, Europe, the Middle East and Africa accounted for 4%, and Japan accounted for 5%.
It can be seen that nearly three-quarters of TSMC's revenue comes from the US market, while Chinese mainland's contribution is only about one-tenth.
In addition, we also know that TSMC relies on the United States and Japan for its EDA tools, lithography machines, and semiconductor equipment and materials.