Erudite Asia’s Post

Korean media: TSMC’s Q3 may once again overtake Samsung to regain the chip sales leadership TSMC is poised to surpass Samsung Electronics in third-quarter chip sales, regaining its status as the global leader. Samsung's Q3 revenue increased 17.2% year-on-year to 79 trillion won (about US$57.7 billion), but its device solutions (DS) division, which handles chips, is predicted to report revenue of 28.56 trillion won (approx. US$20.86 billion), remaining flat from the previous quarter. TSMC, in contrast, anticipates a 39% year-on-year revenue jump to NT$759.69 billion (around US$23.5 billion). If projections hold, Samsung's DS division will again lag behind TSMC. TSMC's success is largely attributed to the surge in artificial intelligence demand, particularly in advanced AI chips for Nvidia. Samsung has faced challenges penetrating the AI market. TSMC dominates the wafer foundry sector, with a 62.3% market share compared to Samsung's 11.5%. Furthermore, Samsung’s non-memory chip sectors might see losses exceeding 1 trillion won in Q3 due to decreased orders and low capacity utilization, despite substantial investments. The decline in Samsung's non-memory chip revenue is stark, dropping from 14.2 trillion won in 2011 to 22.2 trillion won in 2023. In contrast, TSMC's revenue increased to US$70.2 billion during the same period, reducing Samsung's competitive ratio from 88% to 25%. #Semiconductors #Taiwan https://lnkd.in/gBw-ksYy

TSMC has a global market share of 61.7% and dominates wafer foundries Samsung and SMIC. You can’t see the taillights of the car. TSMC maintains a dominant global market share of 61.7% in the first quarter, surpassing Samsung by more than 50 percentage points. SMIC's quarterly revenue surpasses UMC, jumping to the third-largest wafer foundry. The overall recovery of demand for mature processes is slow, with only a 1 to 3% increase in the output value of the top 10 wafer foundries expected in the second quarter. #Semiconductors #Taiwan https://lnkd.in/gje4ayXe

Taiwan Semiconductor Manufacturing Co. stalled, and Taiwan stocks hit a high and then fell 32 points to close at 20,763 points. TSMC stalls, Taiwan stocks hit high then fall 32 points. Wafer foundry TSMC consolidated, Hon Hai dropped 2.22%. MediaTek launches AI service, stock rises. Construction and biotechnology stocks rise. Taiwan stocks trend bullish but face risk of high shocks. #Semiconductors #Taiwan https://lnkd.in/gHmehuGT

The U.S. is preparing to further regulate China’s chip companies, and the world will benefit from UMC The United States plans to expand restrictions on approximately 200 chip manufacturers in mainland China, including major firms like Huawei and SMIC. These companies will need special permissions to access U.S. software and products, indicating a significant escalation in U.S. control over the semiconductor industry. New sanctions are under consideration for SMIC's Xinlian Integration, which focuses on automotive-grade chips. Xinlian Integration holds nearly 90% of the electric vehicle market in mainland China, supplying major customers like BYD and Xpeng. If blacklisted, these companies may seek alternative suppliers, benefiting other wafer foundries, particularly in Taiwan. U.S. controls are creating concerns for European and American manufacturers regarding future access to talent and technology while straining high-end equipment exports to mainland China. The competition from mainland China's semiconductor processes presents challenges for companies like UMC and World Advanced Micro Devices. Both are diversifying operations and increasing overseas production facilities to address geopolitical risks. Although local partnerships may yield moderate order increases, the competitive landscape remains tough due to ongoing advancements in mature processes in mainland China, resulting in a cautious outlook for immediate order growth. #Semiconductors #Taiwan Want more analysis of major developments in AI, semiconductors, and cloud computing in Asia? Subscribe now to the Cognitive Asia newsletter--free of charge--at Substack https://lnkd.in/g4s6bqfi https://lnkd.in/d8QDsmUW

Intel's foundry business losses continue to worsen, and the gap behind TSMC widens Intel's foundry business has seen worsening losses, with the gap between Intel and TSMC widening. The stock price fell nearly 7% and Intel's manufacturing unit's operating losses are projected to reach US$7 billion in 2023, up from US$5.2 billion the previous year. Intel has invested billions of dollars to catch up to TSMC, but still lags behind in terms of profitability. TSMC's consolidated revenue is much higher than Intel's foundry department in 2023. Intel expects to reach breakeven around 2027 and aims for a gross profit margin of about 40% by 2030, but still lags behind TSMC's 53% gross profit margin in the fourth quarter of 2023. #Semiconductors #Taiwan https://lnkd.in/dKb3tzBf

TSMC ADR is approaching a new high. The 17th legal meeting will be crucial to the semiconductor boom in the coming year. The US Dow Jones Index hit a new high, with TSMC's American Depositary Receipts (ADR) nearing a record at $190.6, a 2.59% gain. Taiwan's stock market also surged, closing up 242 points at 22,901. However, foreign investors increased their net short positions in Taiwan index futures to 41,800, signaling cautious market sentiment. TSMC's upcoming legal briefing on the 17th is anticipated to provide key insights into the semiconductor industry's performance and outlook for 2025. Despite Tesla's stock decline from Cybercab underperformance, strong profits in the banking sector fueled gains in US stocks. The Dow Jones rose by 409.74 points to 42,863.86, while the S&P 500 increased by 34.98 points to 5,815.03, alongside positive growth in the Philadelphia Semiconductor Index. TSMC's performance significantly uplifted Taiwan's stock index, driven by substantial foreign and mainland investor activity. Looking ahead, TSMC's legal insights on semiconductor trends, particularly regarding AI chips and next year's capital expenditure, will be pivotal for the industry. Additionally, Largan Optoelectronics is expected to provide valuable perspectives that could influence the Taiwanese electronics sector. Market participants are closely monitoring upcoming earnings from major US tech companies in response to trends in inflation and interest rates. #Semiconductors #Taiwan https://lnkd.in/gQqFfVBb

TSMC’s U.S. factory...an important remote backup center TSMC is broadening its global operations with a new factory in Arizona, USA, which is gaining traction as customers increasingly place orders. This facility is expected to serve as a vital backup for international clients. Concurrently, TSMC's factories in Kumamoto, Japan, and Germany are set to enhance revenue, with plans to elevate overseas production capacity to 20% by 2028. The Kumamoto plant is advancing quickly, supported by Japanese authorities, with capital expenditure rising from $7 billion to $8.6 billion to boost production capabilities. TSMC aims to start shipments from this facility in December 2024, while a second plant will begin construction in late 2024, targeting production by the end of 2027. Mass production at the Arizona plant is anticipated to begin in 2025. Key customers like Apple are committed to orders at this location, with rumors of AMD joining for mass production. Nvidia's CEO has praised TSMC's efficiency and its ability to rapidly scale production in response to demand. #CloudComputing #Taiwan https://lnkd.in/g3QPxDsy

Source: #Trendforce Significant increase in overseas production capacity for #Taiwan #Foundry from 2024 to 2027, with TSMC's boost from facilities in the #US, #Japan, and #Germany. #UMC expands support for customers in #China, enhancing production at facilities in #Xiamen, #China, and #Singapore. #PSMC's growth includes the new #Japanese #JSMC, increasing Japan's share to 7% by 2027, with plans for an #Indian factory. #VIS foresees a rise in Singapore's share from 14% to 24% with the opening of a new factory. #TrendForce Read more: https://lnkd.in/d6cv-q4E

<英検2次試験対策> ※以下備忘録なのでtypo無視で・・・ Do Japanese IT companies need to cooperate more with their foreign competitors? という質問に対して・・・・ NvidiaやTSMCの日本での活動を踏まえて、これらの企業が日本での拠点や工場、データセンターを増やしている現状から、日本に利益をもたらすことと、人事交流を通じてノウハウや人材育成が可能になる、というロジックで意見を展開する。 YES. reasons・・・ ① Cooperation will provide Japanese companies to make bigger profit through the collaboration with IT global giants. e.g. ●TSMC has built new semiconductor factories in Kumamoto to produce more semiconductors; Japanese companies can stably produce high-quality ones. ● Nvidia will build an AI research center in Japan near future. ② Japanese companies can develop specialists through human resource exchanges with major IT firms, enhancing Japan's AI technology capabilities. With these facts, Japanese IT companies need to cooperate more with their foreign competitors. ちなみに・・・data centerというのはサーバーやネットワーク機器を設置するために特別に作られた建物、とのこと。 関連語句 semiconductor / manufacturer / human resource exchange / data center / capability 企業名 Nvidia, TSMC 英検二次対策、問題集をベースにずっと独り言言いながら練習していますが問題集の模範解答の具体例は学生目線で、ちょっと物足りない。そこでstatementを補強するアイデアとして、Japan Timesを活用しています。 Japan Timesはそんなに難しくないし、時事ネタが多いし、LinkedInでよく記事が上がってくるので使い勝手良し！ 書いたメモをLinkedInに投稿して備忘録的に使うと記憶に定着しやすい！後で見返すこともできて便利！LinkedInのこんな使い方もありですね。まさにLinkedIn英語学習術。

Penang has some awesome asam laksa... as well as tons of foreign direct investment (FDI): $12.8B in 2023, more than it received from 2013-2020 combined. That's a lot of asam laksa. Penang is emerging as a 'friendly' place for semiconductor manufacturing, assembly, testing and design for the likes of Intel, Micron, AMS OSram, Ferrotec, China Wafer Level CSP, Ningbo SJ Electronics and Wuxi AMTE. More broadly, Malaysia as a whole has received sizeable commitments from AWS, Nvidia, Microsoft, Bytedance and Google to invest in cloud and AI data centers - as has many of its Southeast Asian neighbours. All of this growth fueled by many things, including 'Friendshoring': 'rather than prioritizing costs, partnering with countries more politically aligned and closer geographically—ostensibly to instill resilience into supply chains.' As Bette Midler once sang, 'oh you got to have friends'.... and asam laksa 🍜 https://lnkd.in/gEYWbp3X