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TSMC is fully invested in the U.S., but it may be abandoned by Apple like Foxconn

Update time : 2022-12-05 09:53:12

After Apple said it would place an order for TSMC's 5nm plant in the United States, TSMC quickly said it would set up a 3nm plant in the United States. Recently, TSMC chartered 10 aircraft to ship equipment and technicians to the United States, demonstrating its commitment to investing in the United States. However, the result of TSMC's courtship is likely to be abandoned by Apple like Foxconn.

In fact, TSMC is helpless to completely fall to the United States, because American chips contribute nearly 70% of its revenue, and the United States also provides technology and equipment for TSMC. It can be said that without American equipment and technology, TSMC would not be able to produce chips; without the huge revenue provided by American chips, TSMC cannot continue to develop advanced processes.
Following TSMC's determination to fully invest in the United States, U.S. chips did not fully support TSMC as TSMC intended. Earlier, TSMC said that because the cost of producing chips in the United States has increased by 50%, it hopes that U.S. chips will increase the price of foundries. Apple, AMD,NVIDIA have ruthlessly refused, meaning TSMC will only have to absorb the increased costs on its own. In addition, the global chip industry has fallen into recession, and TSMC is also worried about its own capital chain problem, so it said it will reduce capital expenditures by $8 billion next year, showing that after the US chip refused to increase the price of foundries, TSMC can only save investment to ensure the safety of the capital chain.
The result, however, will be that TSMC's core competitiveness – advanced technology leadership in the world – has been gradually weakened. TSMC has developed over the past 10 years because of its advanced technology leadership, but its 3nm process has suffered repeated setbacks, and the mass production time of the 3nm process has been delayed. This year's trial production was abandoned by Apple after it confirmed that the performance parameters were not up to standard. Apple finally used the 4nm process to produce the A16 processor. Under the temptation of American chips, TSMC decided to accelerate the mass production of 5nm plants in the United States and build 3nm plants at the same time. However, at present, U.S. chip companies have shown signs of getting rid of their dependence on TSMC.
Qualcomm has transferred some chip orders to GF, and Intel has also received some orders from MediaTek. These orders were originally from TSMC; with Samsung's 3nm process taking the lead, Apple, NVIDIA, AMD, etc. have all deliberately handed over some orders to Samsung, and Samsung has also released goodwill to American chips and is willing to take the initiative to reduce foundry prices, which has put pressure on TSMC.
In fact, U.S. chips have long complained about TSMC's ultra-high foundry prices. Now TSMC will build factories in the United States on a large scale, and TSMC will lose the initiative even further. Industry insiders even believe that the United States is hollowing out TSMC, because TSMC is setting up factories in the United States, and American chip companies such as Intel will have more opportunities to poach TSMC's talents, accelerate Intel's advanced process research and development, and then catch up with TSMC.
As Apple did, Apple asked Foxconn to go to Vietnam and India to set up factories, and Foxconn complied, but Apple did not favor Foxconn because of this. Apple also asked Pegatron and Wistron to set up factories in India and transfer more Foxconn orders to Pegatron and Wistron. The method of checks and balances can be described as being performed by U.S. companies, and TSMC may do the same.

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