Analysts say that the global economic crisis has already begun. For many years, the economy of many countries grew due to debts and a stable political situation. Now the existing balance has been destroyed and the coronavirus has dealt its blow. Despite the looming negative impact on the market and the downturn in demand, TSMC has no plans to cut prices for its semiconductor products.
This was announced at the shareholders’ meeting by the head of the chipmaker CC Wei. He said that the company’s pricing policy is strategic and balanced, not short-term and unprincipled. With its products and work, TSMC demonstrates to customers how much it does to ensure that the business of partners grows and develops.
“Our pricing strategy is strategic, not opportunistic or short term, and customers understand our efforts to support their growth,” Wei indicated in response to whether TSMC will adjust its prices again this year to reflect market dynamics.
TSMC chips won’t get cheaper
For the past five quarters, semiconductor manufacturers have steadily increased the cost of their products; citing shortages, rising costs of components and raw materials. At the moment, a number of them are ready to slow down their growth, but there will be no rollback.
At the same time, chip designers are forced to reduce the cost of their processors for computers; and various consumer electronics due to falling demand for them. Those of the chipmakers who do not have their own production lines will miss the profits at the end of this year.
Now the greatest demand is for chips for automotive and industrial applications. To meet the demand for them, there are plans to spin off the lines; that were used to produce semiconductors for consumer electronics.
As part of the report on the occasion of the end of the first quarter of this year, the CEO of TSMC said that the N2 (2nm) process technology will use new transistor technology, and the first commercial products on the 2nm process technology from the Taiwanese manufacturer will appear on the market no earlier than 2026.
The company formally confirmed that the N2 process technology will be based on GAA transistor technology; with a channel completely surrounded by a gate; but TSMC head CC Wei did not provide any specific information; about the architecture or even the name of the technology. Meanwhile, it became known that the N2 production process would rely on existing ultraviolet lithography technology; with a numerical aperture of 0.33.
So, the N2 process should enter test production by the end of 2024; and high-volume production by the end of 2025. This means that TSMC customers will begin receiving the first batches of chips based on the 2nm process sometime in 2026.