Recently, the semiconductor supply chain market has reversed, and upstream manufacturers have gradually been affected. After rumors that Intel postponed the release of Meteor Lake and Apple rejected TSMC's (TSMC) price increase requirements, TSMC, which seems to be at the top of

Recently, the semiconductor supply chain market has reversed, and upstream manufacturers have gradually been affected. After rumored that Intel delayed the release of Meteor Lake, and Apple rejected the price increase requirement of TSMC (TSMC), TSMC, which seems to be at the top of the supply chain, is inevitably affected.

According to DigiTimes, TSMC is currently facing many customers' requests to correct their orders in 2023. In addition to small and medium-sized manufacturers, it also includes Qualcomm , MediumTek , Nvidia and AMD , all of which are in negotiations with TSMC, hoping to reduce or delay orders.

Currently, the inventory levels of many manufacturers soared to new highs in the past decade, and they had to cut orders in large quantities, at least delay orders, minimizing losses. Similar strategies quickly spread from the downstream to the upstream, affecting the entire supply chain. Faced with the industry's dilemma, TSMC also accepted the requirement to appropriately reduce or delay orders, but was unwilling to give discounts or resume the business model of past sales discounts. Except for Apple, the largest customer, there is no room for negotiation. TSMC is also facing inflationary pressure and needs to maintain the expansion of production capacity, develop advanced manufacturing processes and packaging technology. Only by raising prices can the gross profit margin be maintained at the target of more than 53%.

Although the semiconductor industry faces various adverse factors, investment institutions are optimistic about the future of Tai Chi, among which Goldman Sachs also raised TSMC's target share price from NT$2,750 to 780 yuan. Although TSMC's 6nm/7nm capacity utilization rate has already declined, due to the large orders from Apple, Nvidia and AMD, the 4nm/5nm capacity remains strong, which will improve TSMC's profitability. In addition, mature processes like 28nm are still full capacity.

is expected to remain flat in TSMC's fourth quarter of this year, and will not gradually resume growth until the shipment of 3nm chips starts in the second quarter of next year.