TSMC is a semiconductor manufacturing company in Taiwan. It enjoys a high reputation at home and abroad. It has recently acquired all the OEMs of the Apple A10. The business is even more buoyant. However, TSMC does not satisfy Apple’s big tree. Depend on the mainland for better development.
Why is TSMC keen to expand the mainland market?
The origin of TSMC and Apple
TSMC has always been the exclusive supplier of Apple's iPhone and iPad chips. Thanks to its leading position in chip manufacturing process, TSMC has always suppressed Samsung, and exclusively manufactures processors for Apple’s iPhone 7, iPhone 8 and iPhone X products. .
According to recent news, Apple will start using its own CPUs in its Mac computers in 2020 instead of using its own CPUs.
Because of this reliance, TSMC has to think about its own way. It's good to rely on apples, but one day Apple will integrate the entire process into its own research and development. In this way, relying on Apple will not be a long-term solution. Therefore, TSMC has been Broaden the mainland market.
Why is TSMC keen to expand the mainland market?
TSMC is keen to invest in cutting-edge products
TSMC has independently researched and developed large-scale integrated circuits that are the brains of electronic devices. In terms of improving performance and reducing costs, the subtlety of circuit line widths has become the key. Every year, the latest iPhones launched in autumn will be equipped with cutting-edge circuit products.
According to a semiconductor supplier, although the iPhone's demand is large, customers with expensive, cutting-edge products are limited, resulting in 'production equipment not being used for everything'.
At present, only Huawei uses the most advanced 10nm products in the semiconductor of the latest smartphones. Huawei’s Hess Semiconductor, which is responsible for semiconductor design, and TSMC, which is in charge of semiconductor production, have jointly researched technology and achieved results.
It is expected that in the future in terms of virtual currency and artificial intelligence (AI), the demand for cutting-edge products will expand, and huge investments will be easier to recycle.
Mining brings new business opportunities to TSMC
Apple's latest smart phone iPhoneX sales were sluggish, and the share price of Taiwanese suppliers fell significantly. Compared with November 2017 when the iPhoneX was listed, Hon Hai Precision Industry's share price dropped by nearly 20%. However, TSMC increased by nearly 10%. Taiwan Semiconductor Manufacturing Co., Ltd. seized the demand in the field of virtual currency, and once again gained positive comments on the advantages of the business model that will grow together with its future customers.
Beijing Bitland Technology - The name of this company is popular in Taiwan in the second half of 2017. The company established a large base for virtual currency mining in the mainland mainland, and soon became the world’s largest bitcoin after its establishment in 2013. Mining company, and supporting the company's growth is TSMC.
TSMC provided a semiconductor development platform for computing, and OEM production, supporting the rapid growth of Bitland, and achieved results. From July to September 2017, virtual currency-related sales reached about 350 to 400 million U.S. dollars. Most of them came from Bitcontinent. TSMC's fiscal year 2017 (as of December 2017) consolidated net profit of NT$343 billion, which was a year-on-year increase of 3%. Against a background of weak demand for iPhones, it hit a record high for six consecutive years.
In recent years, the level of artificial intelligence in China has been the same as that of developed countries. In comparison, the market in China is not to be underestimated. In comparison, the domestic market selected by TSMC is more promising than that of Apple.