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3nm has no customers, and it competes with mainland China for the 28nm market. TSMC is seen as bad by investment institutions

Posting time:2023-02-02 09:10:09

3nm has no customers, and it competes with mainland China for the 28nm market. TSMC is seen as bad by investment institutions

Recently, UBS, a well-known investment institution, released a report that significantly lowered TSMC’s target stock price and revenue growth expectations. This is because TSMC’s advanced 3nm process is facing the dilemma of no customers, and it has no choice but to turn around and compete with mainland Chinese chip companies for 28nm. market, which could lead to a decline in its profits. Since the 10nm process surpassed Intel, TSMC has been leading the global chip manufacturing process, especially the battle between 14/16nm and Samsung has proved that TSMC's advanced process is more reliable, and it has established TSMC's leading position in advanced technology. 3nm process. However, the mass production time of TSMC's 3nm process was delayed, and the process continued to continue FinFET technology, resulting in poor performance; Samsung was the first to introduce the GAA gate surround process, so it performed better in terms of performance, which caused TSMC's 3nm process to lose Intel and Apple. The two major customers, of course, Samsung is not easy, Samsung's 3nm process has no public customers, maybe Samsung's 3nm process has no customers. The investment in advanced technology is huge, but there are no customers, so TSMC has to turn around to develop mature processes, especially the 28nm process that has been mass-produced for many years. It is reported that TSMC plans to build 4 28nm factories to expand the income of the 28nm process, which may be used to make up for it Its revenue in advanced technology. Mature processes such as 28nm have suddenly attracted attention because of the oversupply in the global chip market this year, and chip companies have begun to pay attention to cost control, while mature processes such as 28nm have lower costs and can meet the needs of most industries. Therefore, the 28nm process has become a global chip. Craftsmanship valued by the industry. While TSMC is aggressively expanding its 28nm process capacity, SMIC, the largest chip manufacturing company in mainland China, is also aggressively expanding its 28nm process capacity. It is reported that SMIC plans to invest more than 50 billion yuan to expand its 28nm process capacity in order to gain access to the 28nm process market. more income. Compared with TSMC, Chinese mainland chip companies such as SMIC have more advantages in winning mature process customers, because the cost of Chinese chip manufacturing companies is lower. Earlier, a Chinese chip company stated that the company was manufactured by a mainland chip factory. Chip prices are only a quarter of those in the US. The rapidly developing chip design industry in mainland China is also more beneficial to SMIC. In recent years, chip design companies in mainland China have continued to break the gap and made breakthroughs in power chips, 5G RF chips, filters, etc., which has promoted China's chip design industry. Entering a stage of rapid development, 19 of the 20 fastest-growing chip companies in the world in 2021 will be chip companies in mainland China. In the first seven months of this year, the number of chips imported by mainland China decreased by 43 billion, and the export of chips in the first half of the year increased by more than 20%. , which shows the rapid growth of chips in mainland China. Naturally, these fast-growing mainland Chinese chip companies will give priority to chip orders to local chip manufacturing companies such as SMIC. There are reports of high inventories. When American chips are under pressure, they naturally transfer this pressure to TSMC, because nearly 70% of TSMC's revenue comes from American chip companies. It is reported that American chips have asked TSMC to reduce chip foundry prices. As TSMC's profits may be compressed, UBS pointed out that TSMC's capital expenditures will decline in the next two years, and the capital expenditures in 2023 and 2024 are expected to be $37 billion and $38 billion, respectively, down from $40 billion this year. Level. TSMC once threatened that the Chinese mainland market will not affect it, but the reality is obviously not the case. Its largest customer is American chips, and the final sales customer of American chips is mainland China. Now mainland China has begun to reduce purchases of American chips. At the same time, chips in mainland China are growing rapidly, so it is reasonable for TSMC to be undervalued.

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