TSMC needs to win the advanced chip technology and talent war in the new year

"Financial Times" Lex commented that in the new year, in addition to facing the challenges of the semiconductor business cycle or the global economic downturn, TSMC must also win the battle for advanced chip technology and talent.

According to reports, TSMC President Wei Zhejia said that last year was an incredible year. In the four years since he took the job, the Taiwanese chipmaker has set records, during which time TSMC's stock price has doubled. However, the "Financial Times" Lex column reminds that when entering the difficult 2023, TSMC needs to have bold determination in the new year, especially in the two aspects of advanced chip technology and talent competition.

It is reported that TSMC's sales in 2022 have been very strong, with a total sales of US$7.1 billion in August, setting a record for a single month. The U.S. ban on exports to China has bought TSMC more than a decade, after China quickly caught up and drove down prices in the past. However, chip demand and prices are very sensitive to the semiconductor business cycle or the global economic downturn, which is the main challenge that TSMC may face in the new year.

The report also analyzed that semiconductor "nano-competition" brings greater challenges. Samsung Electronics and Intel are fully investing in 2nm technology, TSMC has just started mass production of 3nm chips, and Samsung has started shipping in July last year. For Apple, TSMC's main customer, this could mean delays.

The Lex column of the "Financial Times" pointed out that the chip industry has almost no brand loyalty at all. If you want to maintain the number one position on the customer's supplier list, it depends on "who can ship the most advanced chips."

The Lex column believes that another problem of TSMC comes from within, and that is the shortage of talents. Now that the war for talent is taking place around the world, Taiwan's MediaTek and UMC both plan to hire thousands of workers on the island. On the other hand, U.S.-based Micron, Intel and Nvidia, as well as Dutch chip equipment manufacturers ASML and Applied Materials, are also recruiting heavily in Taiwan, China, which means that TSMC will have to pay higher salaries to prevent talent from quitting.