As the problem of tight supply and demand of semiconductors has been alleviated, upstream manufacturers in the semiconductor industry began to cut orders, and some auto enterprises tried to negotiate with TSMC. In addition to small and medium-sized enterprises, it was recently reported that the top ten customers, including Qualcomm, MediaTek, NVIDIA and AMD, had negotiated with TSMC to reduce and delay orders.

As a result, TSMC has been lost. According to the Electronic Times, industry sources said that although many customers have cut their orders for next year, TSMC still intends to stick to its price increase plan in 2023, and it is expected that the quotation will increase by about 6%.

The source said that except for Apple, TSMC customers can postpone orders scheduled to be fulfilled next year, but even for large orders in 2023, TSMC has no intention of reducing prices or offering discounts.“Other major customers of TSMC, including AMD, MediaTek, Nvidia and Qualcomm, have started negotiations with TSMC on revising orders for next year or postponing delivery.” The source said.

According to IT Home, the source pointed out that although the overall order will decrease in 2023, TSMC’s 22/28nm and 5nm production lines will still be fully loaded.

In addition, compared with the lack of interest in Samsung’s 3nm, TSMC has also obtained the 3nm order commitment from Apple and Intel, which is expected to start mass production next year. At present, the two plants also have plans to scale up. AMD, NVIDIA, Qualcomm, MediaTek and Broadcom need to enter the 3nm era in succession by 2024.

The most important thing is that TSMC has not yet made any concession on the OEM quotation, nor has it recovered its previous sales discount business model. TSMC can accept customers to reduce orders or delay the delivery of goods within an appropriate range, but everything will go according to the contract and will not absorb any losses on its own.