NT $356.4 billion! TSMC didn’t lie. It did its best to support Huawei this time

Since the 1980s, semiconductor industry has entered a stage of rapid development, and further differentiated from IDM mode into fabless and foundry mode. The former is represented by British express, AMD, Qualcomm and Huawei Hisilicon, while the latter is represented by TSMC, Samsung Semiconductor and SMIC. Zhang Zhongmou, founder of TSMC, once said with pride that TSMC’s greatest contribution to the world’s semiconductor industry is to create a foundry model. It’s a long manufacturing cycle. An advanced chip production line often needs tens of billions of RMB. TSMC built the world’s first 7-nanometer production line in 2018, with an investment of RMB 150 billion. < / P > < p > there are few enterprises in the world that can afford such a large investment. The model of OEM solves this problem. TSMC, which focuses on OEM, can focus on expanding chip manufacturing, while chip companies such as Huawei Hisilicon, Qualcomm and NVIDIA focus on chip design, which is an efficient resource integration. The foundry mode initiated by TSMC has also established TSMC’s position in the chip foundry industry. According to relevant statistics, TSMC’s share in the global chip OEM market is more than 50%, which is significantly ahead of the second place Samsung Electronics. In terms of chip technology, TSMC is also a well deserved leader. < p > < p > from 7Nm to 5nm this year, TSMC is the first to mass produce chips. Therefore, TSMC has been favored by apple, Huawei Hisilicon and Qualcomm chip design giants, and TSMC has made a lot of money from it. Recently, TSMC released its third quarter earnings report for 2020, with revenue of NT $356.426 billion, with a year-on-year increase of 29.2% and a month on month growth of 16.9%. TSMC’s sudden growth is mainly due to large orders from Huawei Hisilicon. In May this year, the new regulations issued by the United States require that any chip products manufactured with American technology and equipment must be licensed by the United States before they can be supplied to China, and a 120 day buffer period is given. Huawei uses the 120 days of golden time to prepare inventory. According to Taiwan media, the day before the new regulations were issued, Huawei Hisilicon urgently placed a large order of US $750 million to TSMC, mainly for the production of Kirin 9000 processor. The Kirin 9000 is the latest generation of flagship mobile phone processor independently designed by Hisilicon. It adopts 1 + 3 + 4 architecture design and is produced by TSMC 5 nm process technology. According to the latest running points, the Kirin 9000 has a single core running score of 1016 points and a multi-core running score of 3688 points, both surpassing the flagship processor of Qualcomm, the snapdragon 865. However, according to industry insiders, Kirin 9000 may become the “swan song” of Hisilicon’s flagship chip due to the restrictions of the new chip regulations in the United States. In the past 120 days, TSMC has coordinated the production capacity of NVIDIA, AMD, Qualcomm and other customers, transferred all the 5 nm capacity to Hisilicon’s orders, and the chip production line started three shifts to produce as many chips as possible for Hisilicon. The main factor that made Huawei’s orders strong in the third quarter was that it was able to generate more power. And TSMC did not lie. This time, it did its best to support Huawei! However, TSMC’s surprise is not in terms of revenue, but in terms of profits. According to TSMC’s financial report, in the third quarter, TSMC’s gross profit reached NT $190.494 billion, and its net profit reached NT $13.51 billion, with a net profit margin of 38.5%! By contrast, the net profit margin of apple, the world’s most recognized money maker, is 21.2%. In terms of net profit margin, Huawei’s revenue in 2019 is as high as 858.8 billion yuan, three times that of TSMC. However, the annual total profit is only more than 50 billion yuan, and the net profit margin is only 7.8%. Xiaomi’s net profit margin is 5.5%, and Lenovo’s is only 1.3%. It can be seen that core technology is the foundation for the long and prosperous development of enterprises, which is also the reason why the United States dares to “get stuck”. China’s science and technology enterprises started late, the core technology is controlled by people, the industrial chain is incomplete, and the anti risk ability is low. < p > < p > the US crackdown on Huawei has sounded an alarm for domestic enterprises. The relevant departments and enterprises of the state have formulated the planning objectives of the semiconductor industry, and the self-sufficiency rate of domestic chips will reach 70% by 2025. Fifth personality will be updated, please remember your game account, otherwise you may not be able to play normally

Author: zmhuaxia