[Core Information] TSMC’S Revenue Increased By 30% Year-On-Year, And 2Nm Prices Are Said To Have Increased By 50%

1. TSMC Q3: Revenue +30.3% year-on-year, advanced processes account for over 70%

• core financial data
  • Revenue:NT$989.92 billion (US$33.10 billion), +30.3% year-on-year, +10.1% month-on-month
  • Net profit:NT$452.3 billion, +39.1% year-on-year, net profit margin45.7%
  • Gross profit margin:59.5%, year-on-year + 1.7pct, month-on-month + 0.9pct
  • Capital expenditure (first 9 months):$29.39 billion, continued high investment
• Advanced process structure (wafer revenue ratio)
  • 3nm：23%(Full capacity)
  • 5nm：37%(main contribution)
  • 7nm：14%
  • Total advanced process (7nm and below):74%
• Terminal market
  • High performance computing (HPC/AI):$18.9 billion, accounting for57%, the largest growth engine
  • Smartphones: Benefiting from the stocking up of new iPhone models, significant month-on-month growth
• Q4 Outlook
  • Revenue:US$32.2–33.4 billion(Median +1% MoM)
  • Gross profit margin:59%–61%
  • Operating profit margin:49%–51%

2. 2nm foundry price dispute: rumored to increase by 50%, actual may be 10%–20%

• Rumored version (Korean media/foreign media)
  • 2nm OEM price is higher than 3nmup 50%, single wafer or super$30,000
  • N3P has previously increased by approximately20%, Qualcomm, MediaTek and other customers are dissatisfied
  • Samsung OEM takes the opportunity to compete for Qualcomm orders, TSMC’s U.S. factory costs are higher than those in Taiwan30%+
• Supply chain revised version (Taiwan media / supply chain)
  • 2nm quotation is approx.US$30,000/piece, compared to 3nm ($25,000–27,000)Only 10%–20% increase
  • 3/4/5/7nm advanced process next yearSingle digit price increase
  • TSMC reduces costs by 10%–20% through supply chain to ease customer pressure

3. Huatian Technology acquires Huayi Microelectronics: the leader in packaging and testing enters into power devices

• trading plan
  • Payment method:Issue shares + cash, and raise matching funds
  • Target: Huayi Microelectronics (power device design + packaging and testing integration)
• underlying value
  • A few domestic power devicesFull chainEnterprise, covering automotive / industrial / consumer grade
  • Shaanxi power device leader, customers include BYD, DJI, Infineon, etc.
• strategic significance
  • Huatian: Extending from pure packaging and testing toPrivate brand of power devices, opening up a second growth curve
  • Collaboration: Sharing of customer resources, providing design + packaging and testing one-stop service

4. Silan Micro invested 20 billion to build a 12-inch high-end analog chip production line

• Project Overview
  • Total investment:20 billion yuan, planning capacity45,000 pieces/month, constructed in two phases
  • Implementing entity: Silan Jihua, received capital increase5.1 billion yuan
  • Products:High-end analog integrated circuits, for automotive, industrial, consumer electronics
• strategic value
  • Completing the shortcomings of 12-inch analog manufacturing and strengthening the competitiveness of the IDM model
  • Respond to domestic substitution and ease the supply pressure of high-end analog chips

5. Other important developments

1. Rockchip: Promoting high-performance cockpit chips

• Existing RK3588M supports lightweight ADAS
• RK3668M and RK3688M will be launched soon to provide stronger cockpit computing power
• End-side coprocessor can be deployed7B model, empowering multi-modal in-vehicle AI

2. Serip × China Automotive Chip: Strategic Cooperation for Automotive Chips

• Build togetherAutomotive chip standards, testing and verification, ecologySystem
• Focus on key chips such as automotive communications, drives, and power supplies to promote functional safety and reliability standardization

Industry core trends (late October)

1. Advanced process: TSMC’s 3/5nm is fully loaded, 2nm mass production is approaching, price competition is intensifying, and customers are seeking diversified OEMs.
2. Local production expansion: Silan Micro Plus 12-inch analog manufacturing, Huatian Technology acquired Huayi Microelectronics to improve the layout of power devices.
3. automotive chips: Cockpit computing power upgrades, car specification standards and verification are accelerated, and local companies are deeply involved in ecological construction.