Amid the tense situation between China and the United States, TSMC's orders have surged. Can Samsung get a share of the pie?
According to reports, concerns about the uncertainty of China US relations are increasing day by day before the November US presidential election, and the world's leading foundry TSMC is receiving "urgent orders" from customers. According to the report, the number of semiconductor manufacturing orders from Chinese Mainland customers to TSMC surged, and some customers paid a 40% premium to place orders.
The report states that "customers are expanding their orders to TSMC in response to the uncertainty in US China relations. The sudden tightening measures taken by the US government and the potential negative impact of the exchange rate on the industry have affected this trend.
TSMC's share of revenue from the Chinese Mainland market has been growing, and the surge in emergency orders is expected to significantly increase its sales. As of the second quarter, TSMC's revenue from Chinese Mainland accounted for 16%, second only to North America, which accounted for 65% of its revenue. Industry insiders believe that enterprises in Chinese Mainland that have not been blacklisted by the United States are actively placing orders to purchase advanced technologies and hoarding products.
In the second quarter, TSMC's gross profit margin was 53.2%, exceeding its target of 51%. The company has raised its gross profit margin target for the third quarter to a maximum of 55.5%. If customer orders temporarily surge in the second half of the year, this number may further increase. Earlier this year, due to increased demand, TSMC raised the prices of advanced processes such as 3nm and 4nm.
Now, the focus of attention is whether Samsung Electronics can also obtain temporary orders from TSMC's customers. Samsung Electronics has not yet secured major customers for 2nm and 3nm processes. However, it is understood that Samsung Electronics has obtained some large customers in Chinese Mainland, who may increase orders and contract prices in the second half of the year, thus improving profit margins. In addition, the company also has room to attract new customers.
The US government is currently reviewing measures such as the Foreign Direct Product Regulation (FDPR), which stipulates that if even a small amount of US software, equipment, or technology is used in products produced in other countries, exports must obtain approval from the US government. This shows that the United States has strengthened its review of Chinese Mainland.
An industry insider said: "If TSMC's orders exceed its capacity, the orders of enterprises in Chinese Mainland may spill over to Samsung." He added: "It is crucial to win customers intensively in the second half of the year."
The ongoing trade tensions between China and the United States have led to tariffs, export controls, and other trade barriers, affecting various industries including the semiconductor industry. The trade war officially began in 2018 and has gone through multiple rounds of negotiations, tariffs, and retaliatory measures. This geopolitical risk forces businesses to deal with uncertainty in international relations, affecting supply chains, market access, and regulatory environments.
The report states that "customers are expanding their orders to TSMC in response to the uncertainty in US China relations. The sudden tightening measures taken by the US government and the potential negative impact of the exchange rate on the industry have affected this trend.
TSMC's share of revenue from the Chinese Mainland market has been growing, and the surge in emergency orders is expected to significantly increase its sales. As of the second quarter, TSMC's revenue from Chinese Mainland accounted for 16%, second only to North America, which accounted for 65% of its revenue. Industry insiders believe that enterprises in Chinese Mainland that have not been blacklisted by the United States are actively placing orders to purchase advanced technologies and hoarding products.
In the second quarter, TSMC's gross profit margin was 53.2%, exceeding its target of 51%. The company has raised its gross profit margin target for the third quarter to a maximum of 55.5%. If customer orders temporarily surge in the second half of the year, this number may further increase. Earlier this year, due to increased demand, TSMC raised the prices of advanced processes such as 3nm and 4nm.
Now, the focus of attention is whether Samsung Electronics can also obtain temporary orders from TSMC's customers. Samsung Electronics has not yet secured major customers for 2nm and 3nm processes. However, it is understood that Samsung Electronics has obtained some large customers in Chinese Mainland, who may increase orders and contract prices in the second half of the year, thus improving profit margins. In addition, the company also has room to attract new customers.
The US government is currently reviewing measures such as the Foreign Direct Product Regulation (FDPR), which stipulates that if even a small amount of US software, equipment, or technology is used in products produced in other countries, exports must obtain approval from the US government. This shows that the United States has strengthened its review of Chinese Mainland.
An industry insider said: "If TSMC's orders exceed its capacity, the orders of enterprises in Chinese Mainland may spill over to Samsung." He added: "It is crucial to win customers intensively in the second half of the year."
The ongoing trade tensions between China and the United States have led to tariffs, export controls, and other trade barriers, affecting various industries including the semiconductor industry. The trade war officially began in 2018 and has gone through multiple rounds of negotiations, tariffs, and retaliatory measures. This geopolitical risk forces businesses to deal with uncertainty in international relations, affecting supply chains, market access, and regulatory environments.