Huawei is the second largest customer of TSMC, contributing 14% of its revenue in 2019, and may soon surpass apple to become the first largest customer. However, the US announced a new round of policies in May to directly suppress Huawei, which also hurt TSMC. Analysts said TSMC is expected to reduce its capital expenditure by $7 billion from 2020 to 2021.
According to the analysis of Hou Mingxiao, research director of Asia science and Technology Industry Department of CLSA, in May, some customers of TSMC began to reduce their orders. It is estimated that the production capacity of 5nm process will be reduced by 15000 wafers compared with the expected target. / month, the production capacity of 7Nm will be reduced by 10000-20000 Wafers / month. From 2020 to 2021, the total capital expenditure will be reduced by 5-7 billion US dollars.
Not only customer orders decreased, TSMC also delayed orders with equipment suppliers, with some new equipment orders extended from June to December.
In 2021, TSMC may negotiate with ASML to reduce the payment of EUV lithography machine, which will lead to chain reaction between the upstream and downstream of global semiconductor.
However, for reducing capital expenditure, last week, TSMC officials said there was no change, but analysts believe that the reduction is inevitable, and it will not only affect this year, but also observe the impact.