Taiwanese semiconductor contractor TSMC retained its top position in DIGITIMES Research’s 2022 Asia Supply Chain Market Cap 100.
Image source: tsmc.com
According to analysts, the market value of the top ten Asian suppliers fell significantly over the past year, which was facilitated by many negative factors: pandemic lockdowns in China, Ukrainian events, inflation and rising interest rates. As of January, TSMC’s market value was $378.4 billion, down $197.8 billion or 34.3% from a year earlier. Second place was retained by Samsung Electronics, whose market value fell by 33.1% to $262.8 billion. Third was Toyota Motor with a market capitalization of $225.7 billion and a year-on-year drop of 24.4%. LG Energy Solution took eighth place in the ranking, replacing SK Hynix, which dropped to fifteenth.
Despite numerous negative market factors, TSMC has every chance to increase its revenue by 35% due to orders from Apple, Qualcomm, MediaTek, AMD and NVIDIA, as well as strong demand for 5 and 4 nm power. Samsung also said that semiconductor contract manufacturing revenue reached a record high in the third quarter, and this trend continued until at least the end of the year. The Korean giant has successfully switched to 3nm GAA technology and is preparing for the transition to 2nm and 1.4nm process technology.
Intel also resumed contract manufacturing, receiving $ 171 million in the third quarter of fiscal 2023, although this is only 1.1% of the company’s total revenue. It is too early to compete with the Taiwanese manufacturer of the American company – Intel itself remains a client of TSMC.
Three factors remain the key to TSMC’s success, according to analysts. First, the company improves its competitiveness through technological innovation and product differentiation, to which customers respond positively. Secondly, TSMC has expanded its offer in the HPC segment, where there is an increased demand. Third, the company maintains strategic partnerships with its customers, collaborating with them on technology development, capacity planning, and even pricing.
TSMC may face some challenges in 2023, including those related to the launch of 3nm products, rising depreciation and manufacturing costs due to inflation and overseas expansion. However, the company expects continued growth in profits.
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