I wonder what everyone’s impression is of TSMC? It can definitely be said that it is the world's largest wafer foundry company, with a global market share of 55%+.
also ranks first in the world in chip manufacturing. Although Samsung has now mass-produced 3nm, everyone is still at the 4nm level, and TSMC’s 4nm is obviously more powerful than Samsung’s 4nm. Qualcomm Snapdragon 8+ and Snapdragon 8 , is the best example.
When it comes to TSMC, it is estimated that everyone will not talk too much about SMIC and Huahong Group. After all, their competition points seem to be different, because TSMC focuses on advanced, while SMIC and Huahong focus on Mature, characteristic craftsmanship, etc.
For example, SMIC has a 14nm process, but its revenue mainly relies on 40/45nm and above processes, while Huahong mainly relies on 55nm and above processes.
TSMC’s 7nm and 5nm processes account for 51% of its revenue, while processes above 28nm only contribute about 25% of its revenue. Obviously mature processes are not TSMC’s focus.
However, now it seems that TSMC is no longer talking about martial ethics, and is vigorously developing mature technology to grab the jobs of SMIC and Huahong. It is estimated that SMIC and Huahong will have to work harder next.
According to TSMC, in the next three years, TSMC’s production capacity on mature processes will increase by 50%.
Maybe many people have no idea about the 50% improvement. Let’s do the math and you will know how scary it is. Currently, TSMC’s share of 28nm and above processes is 25%. After calculation, TSMC’s annual revenue on mature processes is, There are about 120 billion yuan. If
increases by another 50%, it will be equivalent to a revenue increase of 60 billion per year for mature technology.
Where does this revenue come from? They must grab it from other foundry companies. After all, the market for mature technology is so big now, and it is unlikely that demand will increase significantly. Everyone is migrating from mature technology to advanced technology, and the market for mature technology will be in the future. The scale will only get smaller, not bigger.
The total revenue of SMIC and Huahong last year was only about 45 billion yuan, which is equivalent to the production capacity that TSMC wants to expand, and is even higher than the production capacity of SMIC and Huahong.
Based on TSMC’s process level, yield rate, brand, etc., if TSMC enters the mature process battlefield, other wafer factories that focus on mature processes will definitely suffer.
Therefore, TSMC’s move is really suspected of suppressing other mature process wafer manufacturers, especially mainland China wafer manufacturers. After all, we can only focus on mature processes and featured processes.
Next, it depends on how SMIC and Huahong will face it and how they will compete with TSMC. But in short, if TSMC does this, it is obvious that they have no moral ethics and are under great pressure.
