"What's the situation? How did TSMC suddenly become a lifesaver for Chinese manufacturers, and they are willing to pay a 40% premium fee! Why are there so many rush orders, and are still willing to pay a high premium? Let's take a look at the doorway.
In the past few months, TSMC has received a large number of expedited orders from Chinese manufacturers who are willing to pay a premium fee of up to 40%.
This situation surprised TSMC because of the large number of these urgent orders, many of which are super urgent, and the premium fees add up to a very substantial amount.
As a result, TSMC's gross profit margin in the first quarter increased significantly, and although dividends fell by three percentage points year-on-year, TSMC was very popular in the industry due to the existence of these expedited orders, pushing up its gross margin.
Most of these orders came from Chinese mainland manufacturers, increasing the proportion of orders from Chinese mainland customers from 11% to 16%.
Major customers include Bitmain, Alibaba's Pingtou Semiconductor, and ZTE Microelectronics Technology Co., Ltd.
The epidemic has affected the electronics industry around the world, resulting in a chaotic supply and demand relationship in the semiconductor industry. With the massive use of hardware such as autonomous driving, 5G, and industrial Internet around the world, the semiconductor industry has benefited a lot and orders have increased significantly.
In order to stabilize production, enterprises accelerate the purchase of semiconductor equipment to reduce the risk caused by subsequent uncontrollable factors.
Why are Chinese manufacturers willing to pay such a high premium for TSMC's services? The answer lies in the far-reaching impact of the pandemic on the global electronics industry. During the epidemic, the supply and demand relationship in the global electronics industry was completely disrupted, the production chain was interrupted, the supply cycle was extended, and the market demand surged.
In particular, with the popularization of 5G technology, the rapid development of autonomous driving technology, and the wide application of the industrial Internet, the demand of the semiconductor industry has reached an unprecedented height.
In this context, in order to seize market opportunities and avoid production stagnation, Chinese manufacturers have stepped up ordering semiconductor products. TSMC, as the world's leading semiconductor manufacturer, has naturally become the first choice of these manufacturers.
In particular, large companies such as Bitmain, Alibaba's Pingtou Semiconductor, and ZTE Microelectronics Technology are willing to pay high premiums to ensure the stability of supply.
Faced with a sudden surge in orders, TSMC reacted quickly. They announced that they will continue to invest in semiconductor processes, especially advanced technology processes that they are proud of. This decision not only solidifies TSMC's leading position in the semiconductor industry, but also demonstrates its ambitions.
TSMC chose to monopolize advanced processes of 7nm and below because these processes are well researched and less risky.
Many other countries do not have mature advanced technology, so TSMC's decision aims to make full use of its own advanced technology to gain more market share, while also effectively avoiding the risks it faces.
The global semiconductor industry is undergoing an unprecedented transformation. The rapid development of autonomous driving, 5G technology, industrial Internet and other fields has greatly increased the demand for semiconductor products.
In order to ensure the stability of production, the company has accelerated the procurement of semiconductor equipment and reduced the risk caused by the extension of the supply cycle. This change in supply and demand has ushered in unprecedented development opportunities for the semiconductor industry.
TSMC's success is not accidental. As the world's leading semiconductor manufacturer, TSMC has won the trust of many customers with its advanced technology and excellent production capacity.
In particular, the surge in orders in the Chinese market has not only pushed up TSMC's gross profit margin, but also demonstrated its important position in the global semiconductor industry.
Despite TSMC's significant presence in the global semiconductor industry, challenges remain. The global semiconductor industry is in a period of rapid development and fierce competition.
TSMC must continue to improve its technical level and maintain its leading position in the market. At the same time, the demand in the Chinese market is increasing, which is both an opportunity and a challenge.
TSMC needs to continuously expand its production capacity to meet market demand, while also dealing with pressure from other competitors.
In the future, with the further development of the global semiconductor industry, TSMC will continue to play an important role. The surge in orders in the Chinese market has brought huge profits to TSMC, and it has also prompted it to continuously improve its technology level and maintain market competitiveness.
The future of the global semiconductor industry is full of opportunities and challenges. With the further popularization of autonomous driving, 5G technology and industrial Internet, the demand for semiconductor products will continue to increase.
In order to ensure the stability of production, enterprises will continue to increase the procurement of semiconductor equipment, which will bring new development opportunities to the semiconductor industry.
TSMC's challenges are also not negligible. The global market is becoming increasingly competitive, and the requirements for improving the technical level are also getting higher and higher.
TSMC must continue to innovate and enhance its competitiveness in order to remain invincible in the fierce market competition.
In this competition in the global semiconductor industry, TSMC has won the trust of many customers with its excellent technical process and strong production capacity. Despite many challenges, TSMC has maintained a strong momentum of development.
In the future, we look forward to the early return to normalcy of the global semiconductor industry and provide sufficient protection for the global demand for chips. At the same time, the mainland will rely on TSMC's production capacity in the short term, but the shortcomings in the future will be slowly solved.
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