On October 25, TSMC continued to decline, closing at NT$371, down 4.13%. The day before, after TSMC's American depositary receipts hit a new band low, it closed at $61.29, down 3.86%.

TSMC Building Visual China Figure

TSMC President Wei Zhejia encouraged employees to take leave and was interpreted as a negative news by the market, resulting in a sharp drop in TSMC's stock price.

On the same day, TSMC stated that during internal communication, the company's president mentioned that the digital transformation of was accelerated due to the epidemic and demands such as and market 5G and AI drove TSMC's business growth. He especially thanked the employees for their hard work in the past three years. At present, life has gradually become normalized, and encouraged to get along with their families more. "So keep working hard after taking vacations."

According to Taiwan media reports, at around 4 pm on October 24, TSMC's internal letter leaked. The internal letter was stated in the form of a video. The main speaker of the video is Wei Zhejia. He thanked the employees for their hard work in the past three years and encouraged employees to get along with their families more and continue to work hard after taking vacations.

Although employees who are on leave are encouraged to exclude R&D personnel with 3nm and more advanced processes, it still sparked discussion. Some semiconductor industry insiders said that TSMC's internal letter of encouragement of holidays by the president is a rare move. Industry insiders interpreted that although TSMC's internal letters only emitted signals that encouraged holidays, compared with the shortage of semiconductor not long ago, the semiconductor recession signal is more clear.

Taiwan Economic Daily reported that since TSMC is mass-producing 3 nanometers in full swing, personnel such as F12B, Tainan F18B (P7) in Hsinchu Baoshan are not included in the scope of "encouraging vacation". In addition, relevant personnel in the R&D plant F12 (P4) N3E are still in the middle of the spring.

Since the beginning of this year, due to some uncertain factors such as global inflation and the Russian-Ukrainian conflict, global consumer electronics demand has declined, and products such as personal computers and smartphones have been seriously affected. Industrial chain manufacturers are all making inventory corrections, which has been transmitted to integrated circuit foundry companies such as TSMC. Previously, chip design manufacturers such as MediaTek , Nvidia (Nvidia), Ultramicro (AMD), and others successively reported order cuts, and admitted that they would initiate inventory adjustments and lower their financial goals. Before

, TSMC also admitted that the 7-nanometer production rate is not as good as before, and there has been a periodic decline. The maturing process OEM factory, such as the world's advanced technology, has seen a sharp decline in productivity.

st, TSMC also admitted the fact that the semiconductor economy is downward at the French statement meeting and predicted that global semiconductors will decline next year, but emphasized that TSMC is an exception, and next year will still be a year of growth.

Wei Zhejia said at the meeting that the semiconductor supply chain continues to sell inventory, and the inventory level is expected to peak in the third quarter, the inventory level will decline in the fourth quarter, and the inventory adjustment will last for several quarters, which may continue until the first half of 2023. Wei Zhejia said that TSMC's target process product portfolio will continue to increase in 2023, and the capacity utilization rate will remain under the increase in value in 2023, and will still be a year of growth.