As some media reported, TSMC’s shareholders’ meeting will take place tomorrow. In addition to the 2019 annual operating report, the shareholders will focus on the two major themes. They are the impact of Huawei’s ban and the establishment of factories in the United States.
The annual shareholder meeting of TSMC will be chaired by the management team headed by Chairman Liu Deyin and President Wei Zhejia. The meeting will recognize the 2019 operation report and will also explain the 2020 operation prospect.
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If the ban on Huawei is not extended, TSMC will no longer be able to ship to Huawei after mid-September. In other words, the operation of TSMC will be affected a lot.
In addition, TSMC has previously announced that it will go to Arizona to build a new 5-nanometer factory. This project is estimated to cost about $12 billion. The client base of this investment case and the high labor costs in the US have also been concerned by shareholders.
TSMC has previously stated that evaluating overseas factories must meet the three major requirements of economies of scale, cost-effectiveness, and personnel organization and supply chain completion.
In this sense, the Taiwanese chip maker should understand how things will go on and revise its strategy according to it. On the one hand, it may lose Huawei as a client. But on the other hand, it has had long-term goals in the US. And the ‘war’ between these two has a huge impact on the overall industry.
Apple and other clients increased orders to TSMC
Apart from this, we got other news from China Taiwan Business Times. Apple, Qualcomm, MediaTek, and others have significantly added orders for 7nm chips in the fourth quarter.
Apple’s iPhone 12 related wafers have been put into production at TSMC in the second half of the year. The A14 application processor will consume TSMC’s 5 nanometer capacity of about 120,000 to 130,000 in the fourth quarter. And it intends to obtain the original 5 reserved by Huawei HiSilicon. Apple also recently planned to expand the production capacity of the iPhone 11 and iPhone SE to seize Huawei’s market share. So in the fourth quarter, it added A13/A12 application processor production capacity of about 70,000 to 80,000 pieces. So, the total number of 7nm wafers invested by TSMC in the fourth quarter is raised to the scale of 170,000 to 180,000 pieces.