TSMC is performing well in October
On November 10th, TSMC announced its financial results for October 2020. According to the report, sales increased by 12.5% year-on-year and decreased by 6.5% month-on-month to NT $ 119.3 billion, and total sales from January to October increased by 27.7% year-on-year to NT $ 1,097.0 billion. It is said that the situation is expected to grow by double digits year-on-year even for the whole year.
Shipments to Huawei, which accounted for about 15% of the company’s annual sales, stopped in mid-September due to sanctions by the U.S. government. It is not expected to have a significant impact on the overall business performance.
Investing $ 15.1 billion
Against the backdrop of strong performance, the company’s board of directors has approved a total investment of $ 15.1 billion, centered on R & D and capital investment in the first quarter of 2021. It is said that expansion of advanced manufacturing capacity, improvement of production capacity in the packaging field, construction of new fabs, etc. are planned, but the breakdown of the investment amount is not disclosed.
The board has also approved a $ 124.7 million investment to build a Zero Waste Manufacturing Center in Taichung Science Park in central Taiwan.
It also approved the establishment of a wholly owned subsidiary with a capital of $ 3.5 billion in Arizona, USA. In May 2020, the company announced that it would build an advanced semiconductor factory in Arizona at the request of the U.S. government to strengthen semiconductor production in the United States, and started construction in 2021 and started production in 2024. The company said it plans to invest $ 12 billion by 2029, but progress has been unclear since then.
However, the company’s state-of-the-art process at the Taiwan Fab in 2024 should have shifted to at least 3nm, and the Arizona Fab will no longer be a state-of-the-art fab. Currently, the company is limited to production up to 16 / 14nm at the 300mm fab (TSMC Fab16) in Nanjing, China, and its subsidiary WaferTech (TSMC Feb11) in Washington, USA also manufactures legacy devices using 8-inch wafers. All advanced process products are manufactured at the state-of-the-art fab in Taiwan, and although the position of Arizona fab is said to be the state-of-the-art fab at the present time, it is not clear what will actually happen. Fab16 in Nanjing, China was also an advanced fab regarding the miniaturization process at the time of construction planning, but due to the intention of the Taiwanese government, in order to avoid the outflow of advanced process technology, further miniaturization process (10/7/5 nm) No transition to.
It is said that TSMC is in talks with the U.S. government on the premise that a large amount of subsidy will be obtained from the U.S. government for the construction of Arizona Fab, which is not profitable only by manufacturing chips necessary for U.S. security. Two bills to raise the subsidy are under deliberation in the US parliament, but in fact it is unclear how much subsidy can be obtained. The company has already begun recruiting engineers from around the world, including Japan, to operate Arizona Fab. It seems that the recruitment started before the fab construction started because it is necessary to receive various trainings in Taiwan for a long time to acquire skills before moving to the United States.