Taiwanese media: Locking in advanced processes below 7nm, Apple, AMD and other seven major manufacturers compete for TSMC's production capacity

On February 28, according to Taiwan media Economic Daily, led by the largest customer Apple, seven major customers including AMD, MediaTek, Broadcom, Nvidia, Qualcomm and Intel have rushed to sign long-term contracts with TSMC to secure production capacity, covering popular fields such as 5G and high-performance computing.

Industry insiders revealed that the price increase mechanism previously initiated by TSMC began to fully reflect after the fourth quarter of 2021. Many customers have actively booked production capacity last year, but some customers, due to strategic considerations, have adopted new prices this year to sign long-term contracts to reserve production capacity, thereby boosting TSMC's high-end process orders.

According to reports, due to TSMC's advanced process leading in mass production scale and yield, customers have expanded their adoption and locked in the 7nm family (including 6nm) and 5nm family (including 4nm). According to a survey by research firm Statista, TSMC's top three customers last year were Apple (accounting for 25.4%), AMD (accounting for about 9.2%), and MediaTek (accounting for 8.2%).

In addition, as for TSMC's fourth to seventh largest customers, the industry estimates that their share will be similar, and the ranking is estimated to be Broadcom, Nvidia, Qualcomm and Intel, accounting for about 7% to 8% of TSMC's revenue this year. Among them, Nvidia has grown the most and is expected to increase significantly from about 5.8% last year.