Taiwan Semiconductor Manufacturing Company TSMC

Performance indicators

2023: World's largest chipmaker by revenue - $69.3 billion

At the end of 2023, TSMC became the world's largest chip manufacturer by revenue for the first time. Analyst Dan Nistedt drew attention to this in early February 2024.

According to the Taiwanese agency Taiwan News, citing data from Nistedt, at the end of 2023 TSMC raised $69.3 billion, while Intel's revenues in the semiconductor industry were $54.23 billion, Samsung Electronics - $50.99 billion.

The publication notes that Intel has led in chip sales for several decades, starting in 1992, with the exception of 2017, when Samsung briefly became the leader.

According to analysts, TSMC's first place in terms of revenue was expected, given that it is the Taiwanese company that offers customers the most advanced and subtle technical processes by February 2024. TSMC's successes were also facilitated first by the increased demand for digital technology during the COVID-19 coronavirus pandemic, and then by a boom in artificial intelligence and neural networks. For example, Nvidia's computing accelerators, like chips for gaming video cards, as well as AMD processors and GPUs, are available precisely at TSMC power. The client base of the Taiwanese chipmaker by the end of 2023 consisted of hundreds of large companies, including, in addition to Nvidia and AMD, HiSilicon, MediaTek, Huawei, Realtek and Qualcomm. Intel is also expected to join them.

TSMC's performance was positively impacted by strong demand for 3- and 5nm chips by the end of 2023. As a negative factor, TSMC noted the continuing trend towards a reduction in chip stocks by its customers.

As of the end of January 2024, TSMC's market capitalization was estimated at $608.15 billion. This is almost $244 billion more than the corresponding indicator of Samsung Electronics at $364.43 billion.^[1]

2022: 9th in the world in terms of capitalization

2021: Revenue growth 24.9%, to NT $1.59 trillion

TSMC completed 2021 with revenue of NT $1.59 trillion ($56.82 billion - the figure in US dollars is indicated in the company's reporting itself), which is 24.9% more than a year earlier. The main driver was the high demand for chips in the automotive industry.

Most of the Taiwanese company's revenue is still provided by the production of chips for smartphones - they accounted for 44% of TSMC's revenue in 2021. However, this business showed an increase of 8%, which is one of the lowest indicators among the manufacturer's business areas.

The largest - by 51% - in 2021, sales of chips for automotive electronics increased, their share was 4%. TSMC's second largest revenue is HPC solutions, which reached 37% of turnover. Deliveries of such products increased by 34%. The company's sales of products for the Internet of Things increased by 21% and amounted to 8% in total revenues. The share of chip sales for consumer electronics for the year remained unchanged, amounting to 4%.

As for the division of earnings depending on the technological process of chip production, 7nm semiconductors took the largest share (31%) in 2021. 19% fell on 5-nm chips, 14% - on 16-nm, 11% - on 28-nm.

In regional terms, North America is the leader in the TSMC revenue structure: customers from there in 2021 brought the company 65% of revenue against 62% a year earlier. The share of orders from the Asia-Pacific region during this time increased from 11% to 14%, although in China it decreased from 17% to 10%. In EMEA, TSMC's sales share rose from 5% in 2020 to 6% a year later, while in Japan the figure remained unchanged (5%).

TSMC's net profit in 2021 was NT $597.07 billion (about $21.37 billion), which is 37.6% higher than a year ago^[2]

History

2023

TSMC employee gets nine years in prison for undermining his colleague

On September 27, 2023, it became known that a Taiwanese court sentenced a TSMC employee who, due to personal hostility, blew up his colleague's motorcycle and caused serious harm to his health.

It is reported that in 2022, a homemade bomb exploded in the parking lot of the TSMC Fab 12 plant in Hsinchu. One person was severely injured and several others were injured. In addition, collateral material damage was caused. The police promptly detained the suspect - he turned out to be an employee of the specified enterprise. During a search in his room in the hostel, materials and substances used in the manufacture of an explosive device were found.

According to the case file, TSMC worker Lai was in a difficult relationship with a colleague named Chen, whom he accused of idling and ignoring colleagues. At some critical point, Lye decided to take revenge on his colleague and set about making a remote-controlled bomb. Her gunman planted Chen's motorcycle on January 14, 2022, and activated an explosive device while the victim was about 30 metres from his vehicle.

Chen survived, but the surgeons had to partially amputate the little finger of his right hand. In addition, the fragments hit his chin, stomach, forehead and arm. Several more people were injured from the explosion, but there were no serious injuries: it is said about damaged clothes and a broken Apple iPhone smartphone. The prosecutor insisted Lai should face trial for attempted Lye. However, the judge concluded that the accused did not want to kill the colleague. According to the verdict, Lye was sentenced to nine years in prison. In addition, he is prohibited from voting or holding public office for seven years.^[3]

Overpayment for neon 6-7 times due to the lack of its supplies from Russia and Ukraine

On May 11, 2023, the Taiwanese contract manufacturer TSMC announced that it was forced to overpay 6-7 times for neon, a noble gas, without which the manufacture of semiconductor products could not be done.

According to Reuters, in the current geopolitical situation, the supply of neon from Russia and Ukraine stopped. However, this gas is an indispensable component used in laser installations in the production of chips for a wide variety of electronic and computer devices. TSMC CEO C.C. Wei noted that the company has to take measures to reduce costs. Several factors have a negative impact on the business, including a high inflation rate and the situation in the market as a whole.

In early 2022, two leading Ukrainian suppliers, which were responsible for supplying about half of the world's high-purity neon for the semiconductor industry, curtailed their activities. We are talking about the companies "Krioin" (Odessa) and "Ingaz" (Mariupol). As a result, at the end of 2022, TSMC was forced to start looking for alternative suppliers and announced the possibility of organizing the production of neon directly in Taiwan.

At the same time, XI Wei, during a speech at the annual technology forum at TSMC headquarters in Hsinchu, said that the neon shortage would not lead to a significant increase in the price of the company's products. TSMC is betting on products for artificial intelligence platforms and 5G communications systems as key areas for business development in the age of smart cars, smart homes and innovative metropolitan areas. In addition, as noted, specialized chips in demand in the light of electrification and automation of the automotive industry open up great opportunities.^[4]

Hiring 6,000 engineers amid global chip shortage

In early March 2023, it became known about the decision of TSMC to increase the staff by several thousand people, despite the global decline in the IT industry and macroeconomic difficulties.

The world's largest contract chipmaker will hire more than 6,000 specialists, Reuters reported. TSMC intends to seek young engineers with bachelor's, master's or doctoral degrees in electrical engineering or software in cities across Taiwan. It is said that the starting salary of a new employee with a master's degree is 2 million Taiwan dollars a year (about $65 thousand at the exchange rate as of March 10, 2023).

To support the company's business growth and technology development, TSMC plans to hire more than 6,000 new employees in Taiwan, including engineers and production line operators in Hsinchu, Taichung, Tainan and Kaohsiung in 2023. TSMC is widely recruiting both experienced specialists and novice applicants in the field of electronics, electrical engineering, optoelectronics, mechanical engineering, physics, chemistry, chemical engineering, industrial design, finance, accounting, etc., - quotes The Register statements from company representatives.

After the outbreak of the COVID-19 pandemic, the semiconductor industry faced serious difficulties that affected the work of enterprises and supply channels. The commissioning of new facilities takes years, which means that enterprises have to plan their work long in advance.

TSMC intends to implement a number of major projects. The company's capital expenditures in 2023 will range from $32 to $36 billion. A significant part of this amount will go to facilities in the United States, the commissioning of which will cost TSMC approximately $40 billion (as of February 2023).^[5][6]

2022

Mass production of the first 3nm processors began

On December 29, 2022, contract manufacturer TSMC announced the start of serial production of the first 3nm microchips. The new line was launched at the company's facility in southwest Taiwan.

TSMC Chairman Mark Liu, during the opening ceremony of production at the Fab 18 plant, said that the total investment in the creation of 5- and 3-nm lines amounted to 1.86 trillion Taiwan dollars, or $60.49 billion. It is expected that 3nm products will be in wide demand in various fields: server equipment (including for cloud data centers), smartphones, augmented and virtual reality devices, equipment for high-speed communication systems, etc.

Switching to 3nm limits further improves performance and reduces power consumption. In particular, with comparable (or even higher) performance with 5-nm products, the gain in energy consumption will be 30-35%. After the start of mass production of 3nm chips, the contribution of this technology to TSMC's revenue is predicted to be greater than the contribution of 5nm chips over a comparable period. Mark Liu also noted that contracts for the production of 3nm solutions will bring $1.5 trillion over five years in terms of the cost of final products.

The Fab 18 plant is said to have entered its eighth expansion phase, making it twice the size of a conventional semiconductor facility. At the same time, TSMC continues to actively strengthen its position in Taiwan. In the second quarter of 2023, the company intends to officially open a research and development center in Hsinchu Science Park in northern Taiwan: approximately 8,000 employees will be stationed here. In addition, TSMC plans to build a wafer factory using a 2nm process technology in Hsinchu and then expand production in Taichung in west central Taiwan.^[7]

US won't let China take Taiwan chipmakers "untouched"

The United States will not allow China to capture Taiwanese chipmakers "untouched." This became known on December 2, 2022.

Former national security adviser Robert O'Brien has confirmed reports that the US will eliminate Taiwan's ability to make chips if China tries to reunite the island with the mainland.

{{quote 'If China takes Taiwan and takes these plants untouched - which I don't think we'll ever allow - they will have a monopoly on chips greater than OPEC's monopoly on oil. }}

In November 2021, the publishing house of the US Army Military College published an article in which it recommended the United States to make direct threats to the destruction of TSMC facilities.

However, Taiwan's National Security Bureau director Chen denied that current defensive plans include destroying the TSMC plant or evacuating engineers.

Even if the other side takes possession of TSMC, this golden chicken will not be able to break the golden egg of the[8]

Stopping Order Fulfillment for Biren Technology

The US authorities have banned the Taiwanese company TSMC from fulfilling orders from the Chinese company Biren Technology. This became known on October 24, 2022. The decision follows a recent move by the US government to increase controls on the export of US chipmaking equipment to China. Read more here.

Stopping supplies to Russia due to special operation in Ukraine

On February 27, 2022, TSMC suspended supplies to Russia due to a military operation in Ukraine, Taiwan's Central News Agency reported, citing sources.

According to sources, TSMC also suspended the production of Elbrus semiconductors developed in Russia.

2021

Start of construction of a chip factory

On November 9, 2021, TSMC and Sony announced the construction of a chip factory in Kumamoto, Japan. This plant will manufacture microcircuits based on the 22/28nm process. Read more here.

TSMC is the most expensive Asian company with a capitalization of $538 billion

In mid-August 2021, the world's largest chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) overtook Chinese tech giant Tencent to become the most expensive company in Asia.

This was due to the fact that Beijing's regulatory pressure on the country's technology sector in the period May-July 2021 hit the value of Chinese and part-time main competitors of technology giants Tencent and Alibaba.

According to Refinitiv Eikon, as of August 18, 2021, the Taiwanese chip developer ranks first in market capitalization among Asian companies in the amount of $538 billion, Tencent ranks second with a market capitalization of more than $536 billion, and Alibaba is in third place with a capitalization of about $472 billion.

Chipmaker TSMC has gained traction as the world faces global semiconductor shortages caused by supply chain disruptions due to the pandemic, along with soaring demand in industries such as automotive and data centers. In response to the deficit, TSMC announced in early 2021 that it plans to invest $100 billion by 2024 to increase its capacity.

Since the beginning of 2021, TSMC shares have risen more than 6%. Taiwan plays a huge role in chip manufacturing, dominating the foundry or outsourcing semiconductor manufacturing market. Much of this dominance is due to TSMC, whose customers are, and Apple. Qualcomm Nvidia

In early June 2021, the world's leading chip manufacturers against the background of their deficit received record revenue in the first quarter of 2021. The figure amounted to more than $20 billion and more than half of the profit came from TSMC. According to various experts, the shortage of chips can last until 2024, that is, their manufacturers will continue to grow, since the cost of their goods continues to grow.^[9]

U.S. demand for more chips to U.S. automakers

In early May 2021, it became known that the US Department of Commerce is putting pressure on Taiwan Semiconductor Manufacturing (TSMC) and other Taiwanese firms, demanding that they prioritize the needs of American automakers and eliminate the shortage of chips in the American market. The country's government says that a shortage of chips for the automotive industry could result in serious job cuts.

US Secretary of Commerce Gina Raimondo explained that longer-term and larger investments in this industry are needed to increase semiconductor production in the United States. In addition, it is necessary to strengthen other critical supply chains, including in allied countries.

We are working hard to get Taiwanese companies, including TSMC, to prioritize the needs of our automotive concerns as many U.S. jobs are at stake, "Raimondo said in response to a request from the head of General Motors.

She also noted that the best long-term solution to the problem would be to produce more chips in America.

In turn, TSMC says addressing the global problem of chip shortages remains its top priority. Company officials said they are working with all stakeholders to address the shortage of automotive chips. In March 2021, TSMC CEO Xi Xi Wei said the company has been working with customers since early January to reallocate additional production capacity, however, after bad weather in Texas and production disruptions at factories in Japan, the global shortage of automotive chips has only worsened.

Taiwan's economy minister says many countries have asked the government and TSMC for help. However, he says the company is a commercial mechanism and must comply with business regulations.^[10]

Apple helps TSMC develop 2nm process technology

TSMC (semiconductor manufacturer) Apple and began working together on 2-nanometer chip manufacturing standards. This became known on March 9, 2021. According information to the WCCFTech portal, they joined forces to speed up the transition to this as yet unannounced technology.

According to available data, the partners are moving towards their goal at an accelerated pace - for example, TSMC has already begun preparing a site for the construction of a factory with equipment for 2-nanometer lithography and the mass production of such chips. Where exactly it will be located remains unknown, but the test production of chips will be carried out at another plant.

TSMC has a factory in the Chinese city of Baoshan, located near Hsinchu. According to WCCFTech, by March 2021, the company is setting up a separate production line for 3-nanometer production there, which it intends to start in the very near future. It is here, with a high degree of probability, that the test release of microcircuits according to 2-nanometer standards will be carried out.

At the beginning of March 2021, TSMC was one of the few companies that mastered the technical process - 5 nm. It uses it to produce chips commissioned by many large companies, including AMD, Qualcomm and the aforementioned Apple, which, according to preliminary data, provided TSMC with 80% of production orders for this technology for the whole of 2021.

Most of the listed companies do not yet claim 3 nanometers, and only Apple is showing interest in it. But this technical process is also very necessary for Intel, whose own plants only recently switched to 10 nanometers. WCCFTech writes that lines in Baoshan are built primarily to fulfill its orders.

The timing of the launch of test production using the 3 nm process technology TSMC and Apple are not reported. According to the Patently Apple portal, the Cupertino-based company has already received the first prototypes of such chips from its partner.

The massive release of 3nm chips is tentatively scheduled for 2022, so Apple's processors, which it intends to introduce in 2021, will be 5nm. Among them may be a mobile A15 for the iPhone and iPad - it will be released according to improved standards of 5 nm, called N5P^[11].

2020

Revenue up 25% thanks to smartphone processors

In 2020, TSMC raised NT $1.34 trillion ($45.51 billion, this amount in US dollars is indicated in the company's financial report), which is 25.2% more than a year earlier.

Most of the turnover (33%) came from the supply of chips made using the 7nm technological process. The second place in TSMC revenue was taken by 16-nm microcircuits (17%), the third - 28-nm (13%).

As for the breakdown of revenue by chips depending on the products in which they are used, the lion's share of revenues (48%) of the company at the end of 2020 were brought by solutions for smartphones. In this segment, sales increased by 23%. The implementation of technologies for high-performance computing rose by 39% - up to 33% in annual turnover.

The top three most profitable areas of TSMC included chips for the Internet of Things, the share of which in revenue was 8%. At the same time, revenues from the supply of IoT chips increased by 28%. Sales of automotive semiconductors in 2020 decreased by 7% and took 3% in the turnover of the Taiwanese company.

Approximately 73% of TSMC's revenue was provided by North American customers, while in 2019 this figure was 59%. The share of income from Chinese customers, on the contrary, decreased significantly during this time - from 22% to 6%. This situation has developed due to US sanctions, which have severely limited cooperation with Huawei.

TSMC ended 2020 with a net profit of NT $518.16 billion (about $17.6 billion), which is 50% more than the previous year.

It also follows from the financial report that in 2020 the company's capital expenditures amounted to NT $507.24 billion, an increase of about 10% on an annualized basis. TSMC is set to ramp up investment amid an increase in orders from customers. Thus, Intel intends to transfer a significant share of processors to TSMC power. In particular, it is assumed that models of Intel Core i5, i7, i9 chips of the consumer segment and solutions for high-performance systems will be manufactured by a Taiwanese contractor^[12]

US allows TSMC to make processors for Huawei under outdated regulations

TSMC received permission from American authorities to supply chips for Huawei, but only those that will be released under outdated, at least 28-nanometer standards. This became known on October 12, 2020. Later technical processes will continue to be unavailable to Huawei. 28 nanometers may not interest her, since all her competitors have already switched to 7 nm and are preparing to conquer the 5-nanometer chip segment.

According to GizmoChina, this is at least 28-nanometer lithography, which in 2020 is almost not used in the production of processors. For comparison, Huawei used 28nm chips in its smartphones back in 2015, while in September 2019 it released the flagship Kirin 990 processor, and it is already 7nm.

In other words, Huawei will most likely not install processors manufactured using technology that remained in the past in its mobile devices^[13].

Suspension of new Huawei orders

On May 19, 2020, it became known that TSMC stopped accepting new orders from Huawei for the production of chips after new restrictions that the US authorities imposed on the Chinese company (manufacturers were banned from selling semiconductors using American technologies to Huawei).

According to Nikkei, orders that were accepted before the new ban, and which are already in production, will be fulfilled if TSMC has time to ship finished products by mid-September 2020.

The interlocutors of the publication noted that this is a difficult decision for TSMC, since Huawei is the second largest client of the company (it brought 15-20% of revenue), but the vendor must follow US rules. At the same time, TSMC itself is the leader in the global market for contract chip production services.

Huawei was among the first to gain access to advanced lithographic technologies introduced on the TSMC pipeline. China's SMIC receives up to 20% of revenue from Huawei orders, but cannot compete with TSMC in the technology sphere. Under the terms of the new export control rules, SMIC will not be able to expand cooperation with Huawei, since it relies on American equipment and. software The situation is similar Samsung with and, MediaTek therefore Huawei can only count on cooperation, but the STMicroelectronics capacity of this vendor is hardly enough to meet all Huawei's needs for microcircuits.

According to Nikkei, Huawei foresaw new US sanctions, so from the end of 2019 it began to take action. In particular, the Chinese giant has secured an annual supply of chips for telecommunications equipment.

On the news of the actual suspension of cooperation with Huawei, TSMC shares fell 4.4% by the close of the exchange on May 18, 2020.^[14]

Construction of a plant in the United States for $12 billion

On May 14, 2020, it became known about TSMC's plans to build its first major plant in the United States. The leading contract chipmaker has outlined $12 billion in investments in this project, which will be implemented in Arizona.

It is assumed that the new TSMC factory will start working in 2024 and will produce processors using 5 nm technology. The monthly production volume at the enterprise will be 20 thousand chips (this is not much, given that the company's Taiwanese plant produces 100 thousand chips per month),  and about 1,600 people will work there.

The capacity of the Arizona plant will not even be enough to meet Apple's needs, Bernstein analyst Mark Lee wrote in a report. In addition, by 2024, 5 nm chips will no longer be as advanced technology as they are today, he believes. In 2019, TSMC delivered more than 12 million semiconductor wafers that house chips.

American authorities reacted to the news of the construction of a large TSMC factory in the United States. US Secretary of State Michael Pompeo said that this TSMC project shows its desire to reduce dependence on China, once the largest production base.

This deal strengthens US national security while China is trying to dominate advanced technologies and control critical industries, Pompeo wrote on his Twitter blog.

In early May 2020, it became known that the administration of US President Donald Trump is negotiating with the largest semiconductor manufacturers , including Taiwan's TSMC, as the country is forced to rely on Asian countries to provide the necessary technologies, and the situation with the coronavirus COVID-19 emphasized the insecurity of global supply chains of goods and services.

2019

Among the largest companies in the semiconductor industry by revenue

Revenue growth of 3.7% to $34.63 billion

In 2019, TSMC generated a record Taiwan $1.07 trillion (about $34.63 billion), up 3.7% from a year earlier. Approximately 49% of sales came from the sale of chips for smartphones, in this segment the company's revenues increased by 12%.

The second largest source of income remains solutions for high-performance computing: their share in TSMC turnover was equal to 29%, sales here decreased by 8%.

The largest growth (+ 33%) was shown by the Internet of Things sector, which took 8% of the company's total revenue. Sales of automotive chips decreased by 7%, and their share in revenue was 4%.

The production of chips using the 7nm process provided TSMC with about 27% of revenue at the end of 2019. The second place in terms of contribution to the turnover was taken by 16-nm solutions with a 20 percent share. Products based on the 28nm process technology brought the chipmaker 16% of revenue, based on 40/45nm - 10%.

In 2019, TSMC shares rose by more than 50%, and in January 2020 their exchange rate rose to a record level. By January 21, the market capitalization of the Taiwanese chipmaker is about $295 billion, which is more than that of Intel ($256 billion).

TSMC ended 2019 with a net profit of NT $345.3 billion ($11.18 billion), which is 1.7% less than a year ago.

It follows from the financial report that TSMC is increasing the cost of upgrading and expanding production facilities to meet the expected surge in demand for chips. Telecom operators around the world are starting to launch 5G networks, and smartphone manufacturers, including Huawei, are releasing devices with support for this cellular technology. TSMC, which makes processors for Apple and Huawei devices, is ramping up revenue largely due to rising smartphone sales.^[15]

2018

Revenue growth by 6.5% to $33.5 billion

В 2018 году Taiwan Semiconductor Manufacturing Co. (TSMC) received record revenue, which amounted to 1.03 trillion Taiwan dollars ($33.5 billion), an increase of 6.5% compared to 2017.

It follows from the financial report that the supply of 7-nanometer chips brought the company 9% of all revenue at the end of 2018, while a year earlier the world's largest contract chipmaker did not produce such products at all under commercial orders.

The share of solutions made according to 10-nm and 16/20-nm technical processes in TSMC's total sales in 2018 was 11% and 23%.

TSMC's fastest growing business is related to the manufacture of computer processors: their implementation in 2018 jumped 61% and reached 14% in the total revenue of the chipmaker. At the same time, most of the revenue - 56% - companies bring mobile products. However, their sales in 2018 increased by only 1%.

TSMC's revenue from the production of chips for consumer electronics decreased by 17%, and in the industrial solutions segment there was a 3% increase. In total, these two segments brought the Taiwanese semiconductor company 30% of annual revenue.

TSMC's net profit in 2018 was NT $351.13 billion ($11.4 billion), 2.3% higher than a year ago. Annual profit, as well as revenue, turned out to be the highest in the history of the company.

Analysts cited by Focus Taiwan attribute TSMC's strong results to strong demand for 7nm processors in the fourth quarter of 2018, when Apple released new iPhone models. In addition to Apple, TSMC has received orders to make 7nm chips from other customers, including Huawei and Qualcomm.

At the same time as the publication of the financial statements, TSMC announced that it was suspending the recruitment of new employees until the macroeconomic situation improved.^[16]

Loss of $85 million due to WannaCry virus

The world's largest chipmaker TSMC has lost $85 million due to the WannaCry virus. The company announced this in a financial report sent to the Taiwan Stock Exchange (TSE) on November 13, 2018, reports Taipei Times.

The cyber incident, the consequences of which were assessed at TSMC, occurred on August 3, 2018. Due to non-compliance with the security protocol during the installation of software on new production equipment, the virus entered the chipmaker's IT network and quickly spread through it, hitting some of the production equipment, including advanced systems for making 7-nanometer chips.

As the company subsequently found out, the malware turned out to be a type of WannaCry virus. The infection occurred due to the fact that computers were installed a version of Windows 7 with uncorrected vulnerabilities.

TSMC staff quickly localized the problem. The company assured that TSMC's production information and customer data were not affected by the incident. By August 6, all equipment affected by the virus was restored, and the chipmaker's production capacity was again operational.

The forced downtime led to a delay in the supply of products to customers, but TSMC promised to fully catch up with the backlog in the IV quarter of 2018. The chipmaker did not report which customers were affected by the incident. Analysts feared negative consequences for the new generation of iPhones, for which TSMC produces chips.

However, although the virus attack caused damage to TSMC, including reputational, the financial losses were not as serious as expected.

Initially, TSMC said that losses due to the incident would reach 3% of the company's quarterly revenue, but then the estimate was reduced to 2%. Taking into account TSMC's projected sales volume in the third quarter of 2018 from $8.45 to $8.55 billion, losses could amount to $169-171 million. Real figures turned out to be lower - 2.6 billion Taiwan dollars or $84.29 million.^[17]

Ex-employee's arrest for trying to 'leak' secrets to China

In early September 2018, it became known about the arrest of a former employee of Taiwan Semiconductor Manufacturing Company (TSMC), who stole trade secrets from the world's largest contract chip manufacturer and tried to transfer them to a Chinese company.

According to the DigiTimes information portal, citing the district prosecutor's office in the Taiwanese city of Hsinchu, a former TSMC deputy technology manager named Chow copied confidential documents related to the production of chips for the 16nm and 10nm process, as well as related plants.

He wanted to transfer the stolen materials to Shanghai Huali Microelectronics (HLMC), in which he tried to take a leadership position after being fired from TSMC in January 2017. However, the man was detained after TSMC convicted him of industrial espionage. The company itself handed over its employee to law enforcement agencies.

It is not known exactly whether the suspect managed to declassify or implement the stolen documents. Given TSMC's close cooperation with, Apple the stolen drawings may well have concerned processors for. iPhone

Chow joined TSMC in 2007 as an engineer in charge of the metal gate transistor manufacturing process - one of the key steps in the manufacture of integrated circuits. During his career, he was responsible for the development of 20-, 10- and 5nm technologies.

TSMC, responding to DigiTimes' request for comment, said the company could not disclose additional details and make statements as the lawsuit began.

China is the world's largest consumer of chips, but in terms of independent development of semiconductor technologies, the country lags behind South Korea, Japan, Taiwan and the United States. To narrow this gap, the Celestial Empire actively attracts specialists from abroad, especially Taiwanese.^[18]

Investing $25 billion in the production of 5nm chips

On June 21, 2018, TSMC announced an investment of NT $750 billion (about $25 billion) in the development of technology for producing processors with transistors of 5 nanometers. The company expects to start mass production of such chips at the end of 2019 or early 2020. This was stated by CEO and Vice Chairman of the TSMC Board of Directors, Xi-Xi Wei (C.C. Wei) during his speech at the forum in Hsinchu.

According to the top manager, the aforementioned $25 billion will be spent on the construction of a plant in The  Taiwan Southern Taiwan Science Park in Tainan. The creation of the enterprise started in early 2018.

Reducing the size of transistors allows you to increase their number in the chip while maintaining the area relative to the chips created by thicker technical processes. Increasing the density of transistors increases performance and reduces power consumption. 5nm processors are being developed by several companies, including IBM, Samsung and GlobalFoundries.

The factory, which TSMC is building to produce 5nm chips, plans to produce more than 1 million 12-inch silicon wafers each year.

In 2018, TSMC began mass production of chips based on a 7nm process technology, which are focused on use in artificial intelligence systems, graphics accelerators, mobile single-chip systems and equipment for 5G networks, said Jack Sun, CTO of the company.

According to him, in 2018 TSMC will release a total of 12 million 12-inch silicon wafers with chips, and deliveries of 7- and 10nm products will double compared to 2017.

To master more "subtle" technical processes, TSMC is actively engaged in research and development. By the end of 2017, 6145 specialists conducted corresponding activities in the company, which is almost three times more than 10 years ago. In 2017, the R&D expenses of the Taiwanese chipmaker amounted to $2.65^[19]

2017: Record profits thanks to cryptocurrencies

On January 18, 2018, Taiwan Semiconductor Manufacturing Co (TSMC), by this time the world's largest contract semiconductor manufacturer, reported a record profit for 2017. The financial success of the chipmaker was facilitated by the high demand for microcircuits for smartphones and mining systems.

TSMC's net profit in 2017 amounted to Taiwan $343.11 billion ($11.6 billion), which is almost 2.7% more than in 2016, when the company's annual income was at Taiwan $334.25 billion. On a per-share basis, earnings increased from 12.89 to 13.23 Taiwan dollars (about $0.45), the Taipei Times reported.^[20]

It also became known that TSMC's annual revenue increased by 3.1% and reached 977.45 billion Taiwan dollars (about $33 billion), CNA news agency reports.^[21]

One of the growth drivers of TSMC was the excitement around cryptocurrencies.

The popularity of mining is very high, although cryptocurrencies are volatile in terms of price. From last year to the present day, demand [for cryptocurrency] remains very high, and we predict the continuation of this trend, "said TSMC Chairman Morris Chang, speaking at a press conference on the occasion of the publication of financial results.

In addition, among the positive factors for the company, the president and one of the executive directors of TSMC S. S. Wei (C. C. Wei) called the release at the end of the year a key novelty in the smartphone market. Analysts, whose opinion is quoted by Reuters, believe that the top manager was referring to the iPhone X, the chips for which TSMC supplies. The communications chip business brought TSMC nearly 60% of its combined revenue, according to the company.

The agency also noted that in 2017, TSMC's market capitalization grew by 38% and reached $212 billion. USA On January 18, 2018, before the publication of the financial statements, the chipmaker's shares added 2.7% in price and were worth 248.5 Taiwan dollars (about $8.5).^[22]

2010

• By 2010, TSMC has representative offices in, China,, India,, and Japan. To Korea Netherlands USA Major customers include and. Nvidia Texas Instruments

In July 2010, Taiwan Semiconductor Manufacturing Company announced the start of construction of a new plant, which plans to start commercial production of chips based on 40nm and 28nm processes from the 1st quarter of 2012. Total investment in the project will amount to 300 billion Taiwan dollars ($9.3 billion). The new plant - Fab 15 - will become the third TSMC site with a capacity of more than 100 thousand 12-inch substrates per month and the second site with such a capacity capable of working with 28 nm technology. For comparison, the domestic chip manufacturer Sitronics plans to master the 90nm norm in 2011.

TSMC announced record investment in production for 2010 at $4.8 billion. The expansion of capacity will not only take more orders, but also increase competition with other market players, including UMC and Chinese SMIC.

The plant will be located near the city of Taichung with a population of about a million people, the central part of Taiwan. The total area of ​ ​ the complex will be 18.4 hectares. It will include two workshops and one office building. The area of ​ ​ production premises will be 430 thousand square meters. m, and "clean rooms" - 104 thousand square meters. m, which is approximately equal to 14 football fields.

The plant will be built in accordance with the company's previously adopted "green" norms, which imply the use of rainwater, heat recovery, the use of solar energy and LED light sources. The goal of all this, no less, is to reduce greenhouse gas emissions to zero. It is expected that the new site by the time it reaches the planned production volume will be able to create a total of 8 thousand new jobs.

2009

In 2009, the company's revenue amounted to $9.3 billion, profit - $2.8 billion.

Notes