TSMC is one of the world's largest chip foundries and an irreplaceable leading supplier among Chinese mainland smartphone manufacturers. But under the sanctions of the US government, TSMC can only bypass American technology to manufacture chips for Huawei. Today, TSMC has begun to fully "fight back", no longer taking the United States as the main market, and has set up a number of wafer foundry projects in Chinese mainland. This series of actions shows that TSMC is working hard to reduce its dependence on the US market while continuing to expand other markets!
Since last year, the US government has launched a series of crackdowns on Huawei, including banning American companies from supplying technology and products to Huawei. Among them, chip technology has received special attention. Because chips are at the heart of modern electronic devices, and American companies have the world's most advanced chip technology, it is difficult to replace. TSMC is a representative manufacturer in this field, and its behavior of manufacturing chips for Huawei has also attracted the attention of the US government. Under the sanctions of the US government, TSMC's survival and development have been greatly affected.
However, TSMC was not crushed by sanctions, on the contrary, it began a full-scale "counterattack". First of all, TSMC adjusted the market focus to the domestic market and tried to reduce its dependence on the US market. At present, TSMC has set up a number of wafer foundry projects in Chinese mainland, with an annual production capacity of 1.3 million wafers. Meanwhile, TSMC plans to invest $2.8 billion over the next five years to build a new wafer foundry to meet Chinese mainland's growing demand. This series of actions will make TSMC more stable, but also provide jobs and promote local economic development.
Second, TSMC is also actively seeking new technological breakthroughs to help companies wean themselves off their dependence on American technology. In recent years, TSMC has begun to develop 5nm chips. It has made great progress in this area. Moreover, the company also plans to launch a 3-nanometer chip in 2021. This means that in the future, TSMC will not only be able to provide Huawei foundry chips, but also provide advanced chip technical support to more customers.
Finally, TSMC is also strengthening cooperation with companies in other countries to reduce dependence on the US market. For example, TSMC is cooperating with companies such as NXP Semiconductor in Europe and ASML in the Netherlands. In addition, TSMC is actively pursuing new projects outside Taiwan to increase the company's revenue streams from other regions.
In short, TSMC is in a period of transition, shifting its focus from the US market to the Chinese mainland market, and seeking new breakthroughs in technology and industrial chain. Although there are many challenges, these challenges also bring more opportunities to TSMC. At the same time, TSMC will continue to strengthen cooperation, expand business scope, make itself stronger and remain competitive. In the future, with the continuous growth of the Chinese mainland market and the increasing opening of the global market, TSMC believes that there will be more opportunities and space to become one of the leaders in the global chip market.
As the global chip shortage crisis intensifies, China's semiconductor industry is accelerating, and TSMC, as one of the world's largest professional foundries, has been in a leading position in the industry. However, recently, TSMC was exposed to cooperate with enterprises on the US sanctioned entity list, which caused doubts and concerns about TSMC. But in this context, TSMC has also begun to fight back in an all-round way, seize the market and protect its own interests.
Recently, it has been reported that TSMC has officially announced that it has cut off some of the order cooperation with Huawei that will end one after another, which means that TSMC has no room for free riding. This move is seen as TSMC's consideration for its own future, as it will trigger dissatisfaction and sanctions risks from the US government if they continue to work with Huawei. In addition, TSMC will also carry out a series of cooperation projects with Chinese mainland chip manufacturers to improve the competitiveness of its products by expanding the scale.
At the same time, TSMC is also accelerating the pace of independent chip design to reduce dependence on external companies. They have already started to build their own R&D team and plan to invest more than hundreds of billions of dollars in independent R&D design and construction in the next few years. This move is also in line with the Chinese government's call for "independent technological innovation", and at the same time, it also brings more possibilities for TSMC to gain a greater voice in the market.
Not only that, TSMC is also increasing investment in production capacity while strengthening independent research and development. They plan to build multiple chip factories in Singapore, Arizona, Japan and other places to increase production and improve production efficiency. Such a move is very sensible, because in the face of a global chip supply chain shortage crisis, it is quite important to be able to quickly increase production and meet market demand.
From the above measures, it can be seen that TSMC is fighting back in an all-round way. They began to strengthen the investment in independent research and development and production capacity, accelerate technological progress through their own advantages and multi-faceted cooperation, and also gain more competitive advantages for themselves in the market. Although their cooperation with U.S. sanctioned companies may cause some difficulties, they have begun to seek effective solutions and have made some progress in the short term.
There is no doubt that the competition in the global chip industry is intensifying, and TSMC is also facing great challenges and pressures. But they still have strong strength and potential to gain more say and competitive advantage in the market. We look forward to seeing their outstanding performance in the future, and we believe that China's semiconductor industry will have better development prospects."