The “money printing machine” in the chip industry takes Apple’s 5nm order alone, attracting 328.9 billion in gold in 11 months

On December 10th, TSMC announced the revenue data for November. In just 30 days, it accounted for 5.3 billion U.S. dollars. The ability to make money is impressive.

Chip World Money Printing Machine

Summarizing the data from January to November, TSMC’s total revenue has reached 1432.033 billion Taiwan dollars, equivalent to 328.9 billion yuan, with an average daily accounting of nearly one billion. The “chip world money printing machine” really deserves its reputation.

TSMC’s revenue performance is so strong, in my opinion, the “chip crisis” has a lot of credit. Affected by market relations, the foundry cost of TSMC’s chips has continued to rise in the past year, and profits and revenue have also achieved substantial increases.

Not only that, TSMC is also actively expanding its production capacity and increasing its market share. This is also an important reason for the increase in TSMC’s revenue, and considering that TSMC’s number of factories and technology research and development progress are ahead of its friends, it is foreseeable that the speed of printing money in the background will be faster and faster.

Monopolize 5nm orders

In fact, TSMC has such a strong ability to make money, a very important reason is that TSMC is backed by Apple.

It is reported that Apple is TSMC’s largest customer and contributes more than 20% of TSMC’s revenue each year. And as Apple’s self-developed chips gradually become popular in its own products, TSMC’s orders are getting larger and larger.

Affected by this, TSMC’s 5nm production capacity has always been highly monopolized by Apple, causing large customers like Qualcomm to abandon TSMC and switch to the Samsung camp.

Of course, there are reasons why Apple prefers TSMC so much.

First of all, TSMC’s technology is more advanced. With the same process, the transistor density of TSMC’s chips is far higher than that of Samsung’s chips, and the products can obtain stronger performance and better power consumption.

Secondly, only TSMC has the ability to meet Apple’s chip production needs. Compared with TSMC, there is a big gap between the number of EUV lithography machines and the number of advanced chip factories. Samsung does not have the ability to take orders for Apple’s A-series chips.

Finally, TSMC has enough “respect” for Apple. In order to retain the largest customer, TSMC has given Apple many discounts. This year, the chip foundry service fee has risen sharply, but Apple’s increase is only 3%. TSMC’s sincerity can be seen.

TSMC’s ambitions emerge

Although TSMC monopolizes 50% of the revenue of the foundry market, its ambitions are more than that.

According to the actions of TSMC in the past two years, it can be seen that TSMC intends to monopolize the global market. To achieve this goal, TSMC is building factories all over the world. In 2021 alone, TSMC has made the decision to double the production capacity of the Nanjing factory, establish new bases in the United States and Japan, and build six wafer processing plants in Taiwan.

Although TSMC’s competitors are also expanding production capacity, the speed of TSMC’s expansion has already left Samsung, Intel and SMIC far behind.

In my opinion, TSMC’s active expansion of production is also a way of self-protection. The United States is mobilizing resources in the global semiconductor industry chain to support the development of its own semiconductor industry, and TSMC has been “hard-pulled” to the United States to contribute to the improvement of the overall strength of the US industry chain.

Taking into account the status of TSMC as an “outsider”, the US will naturally find ways to find manufacturers to replace TSMC. The purpose of TSMC’s global expansion is to reduce its dependence on American technology and enhance its irreplaceable attributes.

On the whole, TSMC’s dominance in the foundry market continues, because TSMC has advantages in all customers, capacity or technology. In the case of tight chip demand, these advantages will become TSMC’s “treasure” and continue to appreciate.

In your opinion, how long will TSMC’s lead in the foundry market last?

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