Data shows that smartphone sales will plummet by 150 million units this year, with final sales around 1.26 billion units. At first, TSMC suffered from Huawei HiSilicon's massive cuts in 5nm chip orders, which caused many people to have temporary doubts about TSMC's production cap

Almost no one in the mobile phone technology circle is spared from the epidemic. The global mobile phone market is facing a rare cold winter in 10 years. The mobile phone sales and shipments of several major mobile phone giants will be greatly affected. Data shows that smartphone sales will plummet by 150 million units this year, with final sales around 1.26 billion units.

mobile phone sales have been greatly affected, but one foundry is still able to protect itself wisely. This is the case with TSMC, which has always been at the forefront of the storm.

At first, TSMC suffered from HuaweiHisilicon's massive cuts in 5nm chip orders, which caused many people to have temporary doubts about TSMC's production capacity. However, soon after, this production capacity gap was blocked by Apple. Apple has increased its 5nm chip orders from TSMC, which to a certain extent ensures the normal operation of TSMC in the short term.

Apple requires TSMC to increase the production capacity of nearly 10,000 5nm chips in the fourth quarter of this year. In this way, it will already have large customers such as Huida or AMD to increase the production of 7nm chips. Apple’s 5nm chips The amount of wafer production has also doubled. It is expected that the production plan of 5nm chips can be fully started as scheduled, and that of 7nm chips can also continue to be fully loaded until the end of the year.

The relationship between TSMC and Apple can be described as an inseparable long-term partnership. TSMC has been producing processor for Apple. This year, regardless of the impact of politics or the epidemic, many people feel that TSMC’s order volume and order cooperation All parties are sensitive topics. But from this point of view, TSMC is just a commercial enterprise. After agreeing to cut off the supply of to to Huawei, it can still have the support of orders from Apple to make up for its losses.

In the current environment, it is not easy for TSMC to be able to fill orders for 5nm chips and start production across the board. The 5nm chips produced for Apple also serve the A14 processor. Usually Apple's A-series chips are produced in April or May, and they are now being produced as scheduled. I just don't know if Apple can sell these chips.

The United States has cut off supply to Huawei. Behind Huawei are China and Chinese consumers. Chinese consumers have begun to reject Apple mobile phones. Last year, 30% of Apple mobile phone sales were in the Chinese market. If the Chinese market is really lost, the 5nm chips produced by TSMC may not be able to be used.

Apple’s future in the Chinese market is foggy, but TSMC may still have a glimmer of hope.