In terms of applications, despite the decline in demand for mobile phones, the largest revenue of TSMC in the second quarter still came from the communications sector, with a contribution of 48%, followed by industry (23%), computers (21%) and consumer electronics (8%). Wei Zhejia, president and CEO of TSMC, said that with the four platforms of TSMC, namely, smartphones, high-performance computing (HPC), Internet of Things (IoT) and automobiles, the booming development of AI and 5G continues to drive high–performance computing. HPC) demand, it is expected that the proportion of HPC in TSMC’s revenue will gradually increase from the current 25%, and will be close to a slight decline, but will maintain a 40 to 43% share of mobile phones; and IoT and automotive-related application revenue is currently The proportion of TSMC’s revenue is about 6%.
In terms of process technology, 16/20 nanometer process is the main revenue, shipments account for 25% of sales in the second quarter, and 13% of 10nm process; overall, the total process revenue below 28nm accounts for the second quarter. 61% of sales. While the 7-nanometer process revenue is still below 1% in the second quarter, it is estimated that it will increase to more than 10% in the third quarter and will exceed 20% by 2019.
Wei Zhejia also mentioned the current status of TSMC’s Extreme Ultraviolet (EUV) lithography technology, indicating that the technology deployment has continued to make good progress in the past few months and is ready to support the N7+ process, which is expected to begin mass production in the second quarter of 2019. The 5nm process N5, which is mass-produced in 2020, is also beginning to be applied to the development of 3nm process technology. He pointed out that TSMC will be the first wafer foundry on the market to adopt EUV mass production.
For the 5nm process, which is expected to be trial-produced in the first half of 2019, TSMC expects that the number of tape outs will be less than 7 nanometers; the company’s chief financial officer and senior deputy general manager He Limei’s media interaction time after the meeting This is because the investment required for the 5nm design is huge, and the customer‘s R&D resources may take some time to get in place, but TSMC is still optimistic about the 5nm process prospect. In addition, in response to the decline in bitcoin prices and the slowdown in mining demand, He Limei said that TSMC has always been conservative on the volatile cryptocurrency market, so the shock of the market has limited impact on the company.
As for the impact of the Sino-US trade war, TSMC Chairman Liu Deyin said that the first wave of tariff lists in the United States has little impact on TSMC, and the impact of the second and third wave tariff lists is still being assessed; ZTE, a Chinese telecom equipment manufacturer previously embargoed by the US, is not a direct customer of TSMC, so it has not brought impact. He Limei added that TSMC can only use the goods listed in the US tariff list to assess the impact of the Sino-US trade war on the company. However, because the customer’s supply chain is not clear, the assessment is not easy and it will take some time to observe.
For the first law conference after TSMC’s founder and former chairman Zhang Zhongmou retired in June, He Limei and Taiwan’s ICBC spokesperson and senior director of the Corporate Information Division Sun Youwen said, “TSMC has always spent a lot of time and energy. In preparation for the conference, although Morris did not come with us this time, we still carefully prepared the meeting according to his method; he will watch our performance at home.” And although TSMC will be 2018 full year camp The growth estimate is revised down from the original 10% to 7~9% high single digits. The annual revenue is still expected to reach a new high and break through terabytes.