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TSMC may invest 150 billion to build a more advanced 3nm factory in the United States

Reuters reported that TSMC has started construction of a 5nm factory in the United States, but recently TSMC plans to invest 23 billion to 25 billion US dollars (about 150 billion yuan) in the United States. TSMC is helpless to do so because its dependence on the United States has further increased.

Before TSMC stopped producing chips for Huawei on September 15, 2020, Huawei was TSMC’s second largest customer. Together with other mainland Chinese chip companies placing orders in TSMC, mainland China contributed 22% of TSMC’s revenue. The United States It contributed about 60% of TSMC’s revenue.

After TSMC lost Huawei, its second largest customer, chip companies in mainland China also reduced the number of bombs dropped on TSMC, which resulted in mainland China only contributing 6% of TSMC’s revenue in the first quarter of this year, while Apple, Qualcomm and Other U.S. auto chip companies have increased the amount of bombs dropped on TSMC, and the U.S. contribution to TSMC’s revenue is estimated to have further increased to more than 70%.

The United States not only contributes the largest proportion of TSMC’s revenue, but some of TSMC’s key technologies and materials come from the United States. TSMC, which has been very dependent on the United States, now loses orders from Huawei. Naturally, its dependence on the United States has further increased, and it has to Look at America’s wink.

In fact, TSMC has made plans to build a chip manufacturing plant in the United States as early as when Trump was president. However, TSMC also hopes to set up a chip manufacturing plant in Taiwan, China out of various considerations, so it has been delayed in building a chip manufacturing plant in the United States.

After the current US President Joe Biden took office, he continued the strategy of developing chips, thus urging TSMC to build a factory in the United States as soon as possible. In the first quarter of this year, TSMC’s performance hit a record high quarterly revenue, showing that the loss of Huawei’s orders did not cause losses to its performance. Instead, its performance grew against the trend because of more orders from American chip companies. Started construction of a 5nm factory in the United States.

The performance of the first quarter also proved that TSMC could not bear the possible consequences of losing the support of American chip companies. In addition, its main competitor Samsung has also agreed to build a chip manufacturing plant in the United States, so it decided to quickly build a 5nm factory in the United States.

Now Reuters reports that TSMC plans to build a more advanced 3nm factory in the United States. It is speculated that TSMC recognizes the importance of the US market. After all, American chip companies may now contribute more than 70% of its revenue. If a more advanced 3nm factory is built in the United States factories, that will help win the support of American chip companies.

At present, the United States still occupies more than half of the global chip market and has a decisive impact on the global chip market. For chip foundries such as TSMC, the American market is an indispensable market. The reality forces it to follow the requirements of the United States. The United States set up manufacturing plants, which is also their helplessness.