According to the news, TSMC has lowered its OEM quotation, resulting in a 10% price reduction for the 28/22nm process
According to industry sources, due to a lack of order visibility and customer order momentum, TSMC has lowered its OEM quotation for the next few quarters.
According to a report by Taiwan Media Electronic Times, sources said that TSMC's 8-inch production capacity quotation from the third quarter of 2023 to the second quarter of 2024 showed a significant reduction in production capacity, and the average 8-inch production capacity utilization rate had dropped to below 60%.
In recent years, TSMC, which has been tough on outsourcing pricing, has finally agreed to negotiate prices with customers. As long as customers promise a considerable number of wafer orders, they will receive discounts. This is the first time TSMC has lowered its quotation since 2020-2022, and has raised it several times before. TSMC's concessions indicate a bleak outlook for the semiconductor market, "the source added.
The source pointed out that if the number of wafers reaches a certain level, the quotation for the 28/22nm and 16/12nm manufacturing processes will be reduced by 10%. However, only major customers have received discounts on the 7/5nm advanced technology.
Previously, TSMC President Wei Zhejia bluntly stated at the law conference, "The general trend is weaker than we previously expected, and when the inventory adjustment will be a good question, all depends on economic factors. The factors that affect the semiconductor inventory adjustment are the persistence of poor market terminal demand, the fact that AI is strong but still unable to fully compensate for the lack of demand, and so on. The third quarter did feel the increase in customer AI demand, but the overall economic situation continued to weaken, the demand recovery in Chinese Mainland was slower than expected, and because of the overall terminal market Demand is weak, customers are more cautious, and the expected inventory adjustment may continue into the fourth quarter. Currently, the outlook is not as optimistic as three months ago
In terms of annual revenue forecast, Wei Zhejia pointed out that this year's annual revenue is denominated in US dollars, with a decrease of 1% to 6% and a second reduction to about 10%, which is still better than the industry average, mainly benefiting from technological leadership and differentiation.
According to a report by Taiwan Media Electronic Times, sources said that TSMC's 8-inch production capacity quotation from the third quarter of 2023 to the second quarter of 2024 showed a significant reduction in production capacity, and the average 8-inch production capacity utilization rate had dropped to below 60%.
In recent years, TSMC, which has been tough on outsourcing pricing, has finally agreed to negotiate prices with customers. As long as customers promise a considerable number of wafer orders, they will receive discounts. This is the first time TSMC has lowered its quotation since 2020-2022, and has raised it several times before. TSMC's concessions indicate a bleak outlook for the semiconductor market, "the source added.
The source pointed out that if the number of wafers reaches a certain level, the quotation for the 28/22nm and 16/12nm manufacturing processes will be reduced by 10%. However, only major customers have received discounts on the 7/5nm advanced technology.
Previously, TSMC President Wei Zhejia bluntly stated at the law conference, "The general trend is weaker than we previously expected, and when the inventory adjustment will be a good question, all depends on economic factors. The factors that affect the semiconductor inventory adjustment are the persistence of poor market terminal demand, the fact that AI is strong but still unable to fully compensate for the lack of demand, and so on. The third quarter did feel the increase in customer AI demand, but the overall economic situation continued to weaken, the demand recovery in Chinese Mainland was slower than expected, and because of the overall terminal market Demand is weak, customers are more cautious, and the expected inventory adjustment may continue into the fourth quarter. Currently, the outlook is not as optimistic as three months ago
In terms of annual revenue forecast, Wei Zhejia pointed out that this year's annual revenue is denominated in US dollars, with a decrease of 1% to 6% and a second reduction to about 10%, which is still better than the industry average, mainly benefiting from technological leadership and differentiation.