As tight supply and demand for semiconductors eased, the industry's upstream manufacturers began to cut orders, even leading Taiwan Semiconductor Manufacturing Co. was affected. TSMC does now face a number of large and small customers revising their orders for 2023. The top 10 customers -- Qualcomm, Mediatek, Nvidia and AMD -- have all been in talks with TSMC to scale back or delay orders.
As a result, word is spreading that TSMC has lost ground. According to DigiTimes, TSMC intends to stick to its 2023 price hike plan, which is expected to raise the offer price by about 6%, even though several customers have already cut orders for next year.
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With the exception of Apple, TSMC's customers can defer orders scheduled for fulfillment next year, but even for high-volume orders in 2023, TSMC has no intention of cutting prices or offering discounts, the sources said.
"Other major TSMC customers, including AMD, Mediatek, Nvidia and Qualcomm, have already started talks with TSMC about revising orders for next year or delaying deliveries." "The source said.
TSMC's 22/28nm and 5nm production lines are still fully loaded, despite a drop in overall orders for 2023, sources said.
In addition, compared with Samsung's 3nm, TSMC has also obtained 3nm order commitments from Apple and Intel, and is expected to start mass production next year. Currently, the two factories also have plans to increase the volume, while AMD, NVIDIA, Qualcomm, Mediatek and Broadcom will wait until 2024 to enter the 3nm era.
The most important thing is that TSMC has yet to make any concessions on its contract price and return to its old sales discount business model. TSMC can accept customers to reduce the order or delay the delivery of goods within the appropriate range, but everything goes by contract and will not absorb any losses.