Two Price Increases in One Year! TSMC's Prices Across the Board Will Increase By 5% to 10%

According to Taiwan Media Economic Daily, it is reported in the IC design industry that TSMC announced yesterday (10) that it will raise its foundry quotations in an all-round way from 2023, an increase of about 6%, covering various processes, which is the first time TSMC has raised prices twice within a year. The legal person expects that, driven by the effect of price increases, TSMC's performance will gain more momentum.

Recently, there has been a lot of noise in the semiconductor market, and some industry players have admitted that the current demand is not as good as the same period last year. Legal person analysis, when the market is worried that the foundry market may reverse and the price will not rise, TSMC has announced the news of a comprehensive price increase next year, which means that the company believes that it is still in a buyer's market, and there is still room for price increases, which is the overall market situation. Inject a cardiac injection.

TSMC did not comment on the price issue yesterday. Regarding the pricing strategy, TSMC President Wei Zhejia previously pointed out at the legal conference that TSMC's pricing is not short-term or speculative, but strategic pricing. However, a number of IC design companies have confirmed that they have indeed received TSMC-related price increases notices.

TSMC's fundamentals are stable, but due to the disturbance of capital flow caused by the US interest rate hike, TSMC's stock price broke the bottom yesterday, dropping to 505 yuan, almost falling below the 500 yuan integer level, and the final decline converged, closing at 518 yuan, down 2 yuan, foreign capital Over 8,000 copies were still sold yesterday, the third consecutive day of oversold. After the news of the price increase came out, TSMC's ADR surged by more than 2% in early trading on Tuesday.

TSMC used to “never raise prices” and at most canceled the sales discount. In August last year, there was a rare report of a comprehensive price increase. At that time, the customer disclosed that TSMC’s mature manufacturing process rose by 20%, and advanced manufacturing process rose by 7% to 10%. Yesterday It is reported that the price increase of 6% in 2023 will be communicated with customers. According to external assessment, the price increase of TSMC's advanced process and mature process in 2023 has been leveled.

The IC design factory revealed that the reason for TSMC's price increase this time is related to comprehensive considerations such as the continuous shortage of production capacity, inflation and production cost increases.

From the perspective of semiconductor price increases, the industry pointed out that in the first quarter of this year, compared with wafer foundries, many integrated component factories (IDM) factories have increased their prices by 10%, mainly focusing on mature process products such as power management ICs, microcontrollers ( MCU) and third-generation semiconductor-related high-voltage process products, as for the production capacity of advanced processes, the supply is mainly in the field of high-speed computing and high-end automotive networking.

The industry speculates that the main application of TSMC's price increase this time should be concentrated in non-consumer fields such as high-speed computing and automotive applications, and it is also an application with high visibility in 2023; as for high-end smart phone and consumer device chip manufacturers can choose from limited partners, also give priority to "guaranteed volume", and exchange for more reservation capacity through long-term cooperation with TSMC.

TSMC's monthly revenue climbed to 172.5 billion

TSMC announced yesterday (10) that its consolidated revenue in April was approximately 172.561 billion yuan, a new high, with a monthly increase of 0.3% and an annual increase of 55%; the consolidated revenue of the first four months was 663.637 billion yuan, an annual increase of 40.1%. The legal person estimates that based on the previous financial estimates put forward by the company, there is still a chance to write a new report on the revenue in May and June.

After TSMC disclosed its April results yesterday, all four major wafer foundries in Taiwan released their revenue in April. TSMC, UMC, and RSMC all recorded new records, with only a monthly decrease of 11% in the world, showing the prosperity of the foundry industry. Still in the high end.

TSMC estimates that this quarter's consolidated revenue will be between US$17.6 billion and US$18.2 billion, with a quarterly increase of 0.2% to about 3.6%. If the median value is calculated, the quarterly increase is about 1.9%, which is expected to challenge the seventh consecutive quarter to rewrite the record high.

According to the assumption of TSMC’s exchange rate at the time, the consolidated revenue for this quarter is about 506.88 billion yuan to 524.16 billion yuan in New Taiwan dollars. After deducting the actual performance in April, the legal person estimates that the cumulative revenue of TSMC in May and June is about 334.319 billion yuan to 351.599 billion yuan. 100 million yuan, with an average of about 342.96 billion yuan, and the converted monthly revenue is expected to be about 167.2 billion yuan to 175.8 billion yuan. It is not ruled out that there is an opportunity to challenge and rewrite a new monthly high.

Due to the stable receipt of prepayments from customers, the legal person estimates that TSMC will complete at least about 13 months of work in a year's working days this year, reflecting the leading edge of advanced manufacturing processes.

TSMC's capital expenditure this year is about $40 billion to $44 billion, a new high. Despite the constant noise in the semiconductor market recently, Wei Zhejia, president of TSMC, reiterated that the relevant investment plans remain unchanged at the legal conference.

TSMC also held its board of directors today and announced a cash dividend of 2.75 yuan per share in the first quarter of 2022. The ex-dividend trading day will be September 15, and the transfer of common stock will be suspended from June 17 to 21. The Board of Directors also approved a capital budget of $16,757.67 million, which will be used for the following four:

1. Build and upgrade advanced process capacity

2. Build and upgrade advanced packaging capacity

3. Establish mature and special process capacity

4. Capitalizing leased assets