TSMC 5nm capacity distribution

It shows that Apple devices and Quallcomm LSI have huge margins.

AMD and Nvidia products presented here are their professional lineup GPUs and chips made for supercomputers. Also with huge margins.

Worldwide sales of semiconductors are poised to increase 25.6% on year to a record high of US$553 billion in 2021, according to the Semiconductor Industry Association (SIA), which quoted a newly released WSTS industry forecast as saying.

In 2022, the global market is projected to post moderate growth of 8.8% to reach US$601.5 billion in annual sales, SIA indicated.

In reality few developed countries performed dirty trick with just hugely increasing their margins on all semiconductors, including very old processes.

By the end of the current year, the value of capital expenditures in the industry may grow by 34% to a record $ 152 billion. Before that, they increased by 41% in 2017, but mainly due to memory manufacturers. This year, contract chip manufacturers will take the lead, assuming 35% of core costs.

The revenue of semiconductor suppliers increased by 26% to $ 553 billion, but the trend will not lose its relevance this year, since the amount of revenue in this segment will exceed $ 600 billion for the first time, according to analysts at Euler Hermes. There are still some risks for the semiconductor industry that will prevent a 9% increase in revenue.

The Dutch company ASML, a monopoly in the lithographic scanner market for semiconductor manufacturing, has updated information on the fire at its Berlin plant. There are no final conclusions on the incident yet, they will be made public later, but the main thing has already been clarified and this makes us worry about the pace of transition to the latest technical processes. The fire partially damaged the production sites for the manufacture of equipment for the EUV range scanners.

In terms of the production of components for EUV scanners, the fire affected part of the production area for the manufacture of silicon wafer holders in EUV installations. This section has not yet been restored and returned to work. Plans to minimize damage to scanner manufacturing and local customer service are being developed.

The company hopes to provide additional information about the incident on January 19 during the announcement of the results of the previous quarter. As this will affect ASML production plans for the new 2022, comprehensive information should be expected.

https://www.asml.com/en/news/press-releases/2022/update-fire-incident-at-asml-berlin

Taiwanese company TSMC is due to report its quarterly financial results this week, but December statistics have already been released. It suggests that the company ended the last three months with an increase in revenue by 21% to a record $ 15.8 billion. According to experts, this year the company's revenue will grow by 26%.

Destruction of all semiconductors corporations with their greedy cartel games became total necessity.

This year, TSMC intends to increase capital expenditures by at least a third of last year's level, to $40-44 billion. Management forecasts that TSMC will increase revenue by 15-20% annually in the coming years, while the profit margin will rise to at least 53% . The need to spend more will not undermine the profitability of the business.

TSMC invests roughly 50% of its revenue in equipment compared to Samsung's 70%. Samsung announced it will begin mass production using its 3nm process in the first half of 2022, overtaking TSMC. However, even if they are unable to overtake TSMC's market share in the short term, taking the initiative to announce mass production using the 3nm process is a strategic move. The announcement proves Samsung is working diligently to reach its goal of becoming the world's number one system semiconductor maker by 2030.

https://www.digitimes.com/news/a20220111PD212.html

Its a treason then

A shortage in the supply of semiconductors has led to an increase in the cost of purchasing chips among original equipment manufacturers (OEMs). They had to spend 25.2% more than a year earlier. It follows from the report of analytical agency Gartner.

Gartner's list of the top 10 semiconductor spenders in 2021 is topped by Apple and Samsung. The former accounted for nearly 12 percent of global chip purchases in 2021. The company spent $68.269 billion on the purchase of chips. The South Korean giant spent $45.775 billion on the purchase of chips. In percentage terms, Samsung increased its chip spending by 28.5% compared to 2020.

American chip maker Texas Instruments announced plans to invest $3.5 billion annually in the production of semiconductor chips in the United States until 2025 as part of the fight against the current deficit in electronic components. This is significantly more than the capital investments that the company has made in recent years.

Of course, current profits are staggering.

Samsung plans to increase the price of its chip manufacturing services by 15% to 20% in the second half of 2022. At the same time, the production of products based on mature technical processes will become more expensive. The company has already agreed with some of its clients, while negotiations are still ongoing with the rest, Bloomberg reports, citing sources close to the issue. Samsung itself declined to comment.

Nice, more inflation.

U.S. Secretary of Commerce Gina Raimondo said on Wednesday that lawmakers appear to be moving to carve off $52 billion in semiconductor chips manufacturing subsidies from a larger bill on boosting U.S. competitiveness with China.

"Things seem to be coalescing around the path of chips, or maybe chips plus a thing or two, and getting it done this month," Raimondo told Reuters in a telephone interview. "It seems like that's what Congress is coalescing around."

A smaller bill could also include investment tax credits for semiconductor manufacturing, she said, but emphasized that discussions are very fluid. "That is a good outcome because the worst outcome is getting nothing done by Aug. 4," when Congress leaves for summer recess, she said. "Better to get chips plus a little done than nothing done."

Another round of free money to this guys.