TSMC is exposed to Apple’s A13 chip orders. Future global market share may exceed 60%.
According to Taiwan media reports, TSMC will win all orders for Apple’s 2019 A13 chip production, further expanding its leading position in the field of foundry. In the first half of 2018, TSMC’s global market share reached 56%. The industry expects its global market share to exceed 60% in 2019.
Author Liu Yuqing Editor’s Peace
Taiwanese media Digitimes quoted people in the industry chain as saying that Apple recently confirmed that the A13 chip was handed over to TSMC in 2019. Previously, TSMC won orders for large chips from Huawei, Qualcomm, MediaTek, Supermicro, NVIDIA and other companies. In the first half of 2018, TSMC’s global market share reached 56%. With the expansion of customer base and order size, the industry expects that TSMC’s global market share is expected to exceed 60% in 2019.
TSMC’s recent revenues showed a rising trend. Its revenue in September was 94.922 billion Taiwan dollars, up 4.2% from the previous month and up 7.2% year-on-year. It was the second highest level in a single month in recent years. According to TSMC, this is mainly due to the depreciation of the Taiwan dollar and the high demand for 7nm orders. There will be more orders for high-performance 7nm chips from AMD and NVIDIA.
With the surge in revenue in September, TSMC’s Q3 quarter total revenue reached NT$260.347 billion, up 11.6% from Q2, up 3.2% from Q3 in 2017. The overall performance slightly exceeded Q2’s Q3 quarter. The expected level. From January to September, its cumulative revenue also reached NT$741.7 billion, an increase of 6% year-on-year.
Apple “preference” TSMC
The partnership between Apple and TSMC began in 2014, when Apple’s new iPhone and iPad chips were handed over to TSMC. Since the OEM A9 chip was OEM with Samsung in 2015, TSMC has lived up to expectations. With the advantages of technology and yield, it has successively won OEM orders for exclusive production of Apple A10, A11 and A12 chips.
Apple’s full delivery of chip orders to TSMC is also a “bet” for the two companies in the year. Apple Chief Executive Jeff Willams said in the 2017 30th anniversary of TSMC that when the two sides negotiated cooperation, it may be mentioned that if Apple wants to place 100% on TSMC, TSMC must invest $9 billion to produce 500 million chips. At the time, both companies risked a lot of risk because, at the time, few semiconductor companies would invest $9 billion in a single customer.
In an interview with EE Times, Arete Research analyst Brett Simpson said: “As long as TSMC continues to provide innovative products every year and has a high yield, it is expected that TSMC will remain Apple’s only supplier in the next few years.”
Randy Abrams, an analyst at Credit Suisse, said that TSMC is likely to remain the sole supplier of Apple processors by 2020. This is a very special case for Apple, which used to be supplied by many Asian companies. Provide key components to spread risk and master the right to speak in pricing.
For TSMC, supporting Apple represents a huge capital investment, and it also means that technology leading the semiconductor industry must be launched at a faster rate.
TSMC technology “rolling” Intel, Samsung, etc.
According to reports, TSMC took the lead in entering the 7nm process era in April this year, and will be the first chip foundry to truly mass produce 7nm EUV process. In the future 5nm process era, I am afraid that only one or two can follow the pace of power generation.
In the global chip foundry market, with the progress of GlobalFoundries, Intel and Samsung made slow progress, TSMC has taken the lead in mass production of 7nm process, and is now a winner in the 7nm process technology.
The world’s second-largest chip foundry, Gexin, announced in August this year that it would suspend the $10 billion 7nm FinFET (Fin Field Effect Transistor) project. In the future, the consumer electronics industry will rely more on TSMC and Samsung’s two OEMs.
In the past, Intel has maintained a leading position in semiconductor process technology. Since 2014, it has slowed down its development. 14nm has become the longest-lasting process technology in its history. From the 10nm process, the yield rate cannot be effectively improved, and its mass production plan has been Delayed.
Digitimes reported that although Intel has determined that it will achieve full-scale production of 10nm process in 2019, it is likely to abandon the chip foundry business due to the impact of process delay, conversion of new and old platforms, etc., and it will be difficult to win big customers such as Apple. Order.
Samsung was the exclusive manufacturer of the A-series processors for Apple’s iPhone and iPad products. However, as competition and legal disputes between the two companies continued to intensify, Apple began to turn to TSMC. Since Samsung lost Apple’s chip order, it tried to regain the chip order from TSMC.
Digitimes said in a report in June this year that Samsung also wants to get a share of TSMC in 2019, trying to regain some orders for A13 chips. Previously, Samsung was also developing InFO (Fan-Out) packaging technology, and claimed to surpass TSMC at the 7-nm node through advanced EUV (Ultraviolet Lithography) technology. However, Apple seems to prefer TSMC’s InFO technology, and A12 chip OEM orders are all handed over to TSMC.
Previously, TSMC had said that its InFO technology is excellent in reducing the thickness of the chip package, and can also improve the performance and energy efficiency of the chip at the same time, which is one of the reasons why TSMC continuously won Apple’s exclusive order.
TSMC’s leadership in chip technology has also brought them opportunities other than Apple.
EE Times analysts mentioned that TSMC has won new business opportunities for the company because it has a leading position in the 7nm technology field. Mark Li, an analyst at Bernstein Research, pointed out that TSMC will regain Qualcomm’s advanced product line orders this year. Li said: “This is an important development, because Qualcomm has been purchasing high-end products from Samsung and Globalfoundries since 2014.”
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