Tsmc Songkou Does Not Rule Out The Acquisition Of "memory Chip Company"

According to the Nikkei News, TSMC Chairman Liu Deyin said in an interview at the Taipei International Semiconductor Show that Songkou “TSMC does not rule out the acquisition of memory chip companies”, for wafer foundry leaders who have always been inclined to avoid risks. Said to be a rare statement.

As the smartphone market slows down and mobile phone profit growth slows down, TSMC, the world's largest chip maker and Apple's main supplier, is saying that it does not rule out any possibility of acquiring a memory chip company, but Liu Deyin also pointed out that there is currently no Determined acquisition target.

Market watchers say that the acquisition of memory chip capabilities will benefit TSMC, as future chip designs may incorporate more features to improve performance and power efficiency.

TSMC has not made any major acquisitions so far. A veteran industry insider speculates that South Asia Branch, a Chinese memory chip supplier, may be a potential partner or investment target. South Asia Branch said that it did not receive any acquisition information and refused to comment; on the other hand, industry insiders also speculated that TSMC and Micron joint ventures may also be an option.

Last year, TSMC had considered the acquisition of Toshiba memory, but it was due to limited space for comprehensive utility.

TSMC faces the decline in revenue of the first mobile phone related department this year. In the past decade, mobile phone chips have become the most important growth momentum of TSMC, accounting for half of the company's total revenue. However, with the growth of artificial intelligence, high-end computing and automotive chip demand, growth momentum seems to have changed.

TSMC has a 56% market share in the world and has 450 customers. Leading chipmakers such as Broadcom, Nvidia, Qualcomm, MediaTek, NXP and Xilinx rely on the company's manufacturing technology. TSMC expects revenue this year to grow by 5% to 10% in US dollars.

In addition to the acquisition, Liu Deyin also said that the company's capital expenditure is expected to continue to grow in the next few years. Chief Financial Officer He Limei said in July that TSMC will spend about $10 billion a year in the next few years and $10.5 billion in 2018.

Apple's upcoming iPhone uses TSMC's 7nm process technology, and last year's iPhone X used the company's 10nm process. Smaller sizes mean greater challenges and production costs, and many in the industry believe it is difficult to develop chips below 2 nanometers.