TSMC Shareholders’ Meeting: Responding to Issues such as “Building a Factory in the U.S.”, “Huawei Ban”

On June 9, TSMC held its 2020 Annual General Meeting of Shareholders in Hsinchu. The meeting mainly passed the following major resolutions:

1. Confirm 2019 business report and financial statements. Consolidated revenue totaled NT$1,069.9 billion, net profit was NT$345.26 billion, and diluted earnings per share was NT$13.32;

2. Election of Mr. Yancey Hai as an independent director of the Board.

In addition, at this meeting, TSMC also responded to the current concerns about “TSMC’s construction of factories in the United States” and “the impact of the US ban on Huawei’s orders”.

On the issue of building a factory in the United States, Liu Deyin, chairman of TSMC, said that if the factory is confirmed, the funds will be in place from 2021 to 2029, and it is planned to be officially put into production in 2024, mainly manufacturing high-end defense systems and communication equipment. 5nm chips. The facility will process more than 20,000 wafers each month, each containing thousands of individual chips.

On the issue of whether it is in the company’s interests to build a factory in the United States, and whether the loss of Huawei orders will affect the company’s revenue, Liu Deyin said that the decision to build a factory in the United States is still inconclusive, but it is indeed in the company’s interests. Recruit more talents in related fields. If you lose orders from Huawei, there will still be more orders from other customers, but it will indeed have an impact, and I don’t know when the revenue will be restored, but it has not stopped accepting orders from Huawei, which are all rumors. He also stated that he did not want this to happen.

If the US restrictions are officially implemented, how will TSMC make up for Huawei’s HiSilicon orders? Liu Deyin, chairman of TSMC, said: “If it happens, we will replace it in a very short time. It is difficult to predict how long the replacement will take.”

Currently, TSMC has a fab in Camas, Washington, and design centers in Austin, Texas, and San Jose, California. The Arizona fab will be TSMC’s second U.S. production facility. base.

Yesterday, there was also a Taiwan media report that TSMC could not ship to Huawei HiSilicon after 120 days due to its inability to obtain a license from the U.S. government, so the advanced production capacity of the fourth quarter originally booked by Huawei HiSilicon has been opened to other customers, including Apple, Major customers such as Qualcomm, MediaTek, and Supermicro immediately placed additional orders. In the fourth quarter, the 7nm production capacity will remain fully loaded, and the 5nm utilization rate will also remain high.

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