Shulou(Shulou.com)11/24 Report--

CTOnews.com, October 3, according to Taiwan's Economic Daily, TSMC reported an overall increase in wafers produced in 2023, with 8 inches up 6%, 12 inches up 3% and 5%. Corporate organizations expect a high probability of price increases; although the semiconductor industry is facing inventory adjustment, which will indirectly affect TSMC, TSMC is highly competitive, so the evaluation maintains a range of operations.

According to the market, IC designers confirmed that they had been informed by TSMC that the wafers produced from next year would rise across the board. Sept. 28, when SMC issued a call for a price increase, was rejected by Apple, a big customer with a revenue proportion of more than 25%, and another major customer, Nvidia, was also waiting for the opportunity to ask for the same treatment.

The legal entity said that at present, it seems that TSMC has a high probability of price increase in 2023. Due to the outbreak of the epidemic, TSMC cancelled the price discount measure of 20.3% for the first time in 2021. Most of the price increases of TSMC reflect the rise in cost prices. In 2022, mature processes with N16 and above have increased prices by 15.2%, N7 and more advanced processes by 10%, even if the price increase in 2023 is 3%, compared with other industries. The price is still reasonable. At present, in the face of a reversal in the semiconductor market, it has been reported that clients hope that TSMC will face difficulties and give way to profits.

And the price fluctuation of the high-end process below N10 is lower than that of other processes, including only TSMC and Samsung that can provide mass production below N10 in the world, with limited supply, the price is relatively stable; N5 and N3 are new processes for many customers, and there is no problem of price rise or fall at all, unless customers maintain the original process, there will be the problem of bargaining. Usually larger customers place orders in TSMC, not only orders from a single process, but also orders from other processes. TSMC will quote prices according to the order quantity of individual customers.

CTOnews.com learned that analysts pointed out that the greater impact on TSMC is that customers transfer to the new process more slowly, and the higher ASP of higher-level processes will have an impact on TSMC's overall ASP. Advanced process is the main source of revenue for TSMC. In the second quarter, TSMC N5 process contributed 21% revenue to N7 process, while 30% N7 process contributed more than 50% of the performance. Another impact is the deterioration of the economy, the reduction of customer orders and the decline in capacity utilization, especially in recent years, capital expenditure has increased significantly, depreciation expenses have also increased, once capacity utilization decline, gross profit margin will be greatly affected.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.