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 Hou Mingxiao, head of research at CLSA's Asian science and technology industry, TSMC customers began to cut orders in May, with production capacity expected to be reduced by 1-1.5 million wafers nm 5. A total of $50-7 billion in capital spending nm 2020-2021.
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.
But on the one hand, tsmc officials said there was no change last week, but analysts said the cut was inevitable and would not only affect this year, but also watch.