• TSMC reported its first quarterly revenue miss in two years, signaling the global decline in electronics demand is starting to catch up with the chip giant.
• TSMC is taking share from Intel, and increasing its share within the foundry business.
• TSMC is a service business, not just a pure production business, and is looking to expand its global footprint to meet customer needs.
• TSMC is working to reduce costs by building up the semiconductor supply ecosystem in the US and Japan, with government support.
• TSMC is expanding its geographic reach, likely in response to customer demand for “Made in America” chips.
• TSMC’s pricing will reflect the value of geographic flexibility, and the company is confident that its 7nm process will remain a large and long-lasting node.
• The question remains as to whether specialty applications will backfill 7nm capacity, as the cost of the process is much higher and the benefits may not be as great for analog chips.
• TSMC is working closely with customers to develop specialty and differentiated technologies to drive additional wave of structural demand from consumer, RF, connectivity and other applications.
Published January 17, 2023.
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