According to some media reports, an important meeting of TSMC shareholders will be held tomorrow. In addition to the annual operating report for 2019, shareholders will focus on two main topics: the implications of the ban on cooperation with Huawei and the construction of factories in the United States.
TSMC’s annual shareholders meeting will be chaired by a team of managers led by chairman of the board of directors Liu Deyin and president Wei Zhejia. The meeting will discuss the results of the last operational year and plans for the future.
If the ban on cooperation with Huawei is not lifted, TSMC will no longer be able to send Huawei chips after mid-September. This will significantly affect the TSMC business, because the Chinese company is one of the key partners.
In addition, TSMC previously announced that it was planning to build a 5-nm plant in Arizona. The project is valued at approximately $ 12 billion. The high labor cost in the USA and the client base of the future enterprise are very worrying for some shareholders. TSMC previously stated that before the construction of factories abroad three conditions must be met: economic efficiency, staff qualifications and ready-made supply chains. Apparently, in the US all this is available, since it was decided to build.
It turns out that on the one hand, the company may lose Huawei as a customer, but on the other, by building a plant in the United States, it will try to protect itself from possible new sanctions. The trade war between China and the United States has a huge impact on the entire industry.
In addition, according to the China Taiwan Business Times, customers such as Apple, Qualcomm, MediaTek and others significantly increased orders for 7-nm chips in the fourth quarter. In particular, in the second half of the year, production of chips for the Apple iPhone 12 family of smartphones will begin. In the fourth quarter, TSMC will print 120-130 thousand silicon wafers with 5-nm A14 processors. At the same time, the Cupertino giant intends to get the power reserved for Huawei HiSilicon. Apple also recently planned to expand production of the iPhone 11 and iPhone SE in order to capture Huawei’s market share under pressure. Thus, in the fourth quarter, TSMC will produce 170-180 thousand 7-nm wafers for Apple with A13 / A12 chips instead of the previously reserved 100 thousand for Apple.
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