TSMC completes production of 1 billion 7nm chips, with initial orders from Bitmain on the left and Intel on the right!

TSMC's stock price has surged beyond NT$400 this year. Recently, the company announced on its official Blog that it achieved a milestone in July by producing over one billion fully functional 7-nanometer chips. The initial customers include Bitmain for mining chips, Apple's A12, and Huawei's Kirin 980. In contrast to Intel's struggles with 7-nanometer chips, foreign media have suggested that the era of American semiconductor dominance has come to an end.

TSMC stated in the blog that the 7-nanometer chips went into mass production in April 2018 and have since served over dozens of global customers, creating over 100 chip products. This marks a faster production realization compared to any of TSMC's previous technologies and products.

In addition, TSMC has integrated Extreme Ultraviolet Lithography (EUV) technology into the 7-nanometer chip process and laid a solid foundation for the 5-nanometer chips. The 7-nanometer chips are not only suitable for computers, tablets, and smartphones but are also applied in the highly demanding area of autonomous driving for cars. TSMC also revealed that the 6-nanometer chips are set to enter mass production soon.

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Semiconductor Technology: "Samsung Overtakes Intel"

According to CNN, there are only three companies in the world capable of manufacturing advanced chips: Taiwan Semiconductor Manufacturing Company (TSMC), Intel from the United States, and Samsung from South Korea.

Intel has long been the global leader in chip manufacturing. However, its chip production processes have been facing frequent setbacks. Initially planning to use 10-nanometer chips as the main product in 2020 and 2021, Intel aimed to transition to 7-nanometer chips in the fourth quarter of 2021. Unfortunately, not only did the progress on the 10-nanometer chips fall behind, but the 7-nanometer process also significantly lagged.

When it was confirmed in mid-July of this year that the production of 7-nanometer chips was facing difficulties, the news that Intel was considering outsourcing production sent shockwaves through various industries. Analyst Chris Caso from financial institution Raymond James pointed out that if outsourcing becomes a reality, it would mean the end of Intel's dominance in the U.S. market. The probability of Intel catching up with TSMC in the next five years is almost zero. Intel's stock price also plummeted by 24% in July.

Next Step: Building a Plant in Arizona in 2021

It was reported in early May that TSMC would establish an advanced wafer plant in the United States, with plans to set up the plant in Arizona in 2021. After mass production begins in 2024, the estimated monthly production capacity is 20,000 wafers.

In fact, on May 15, the U.S. government issued a ban on Huawei, which could affect TSMC's shipments to Huawei. The market generally expected that TSMC's performance would be impacted, but TSMC completely defied market expectations by achieving a 34% increase in revenue in the second quarter compared to the same period in 2019.

According to a report from Business Next, TSMC stated that the regulations related to the Huawei ban have not been finalized. They will continue to monitor the actions of the U.S. and there is still a glimmer of hope for shipments to Huawei in the future, possibly through the "general product" method.

Increased Demand for Mining Machines Despite Halving

Despite occasional rumors of internal strife within Bitmain, there have been recent positive developments. Core Scientific, one of the largest mining companies in North America, announced at the end of June that they had purchased 17,595 Antminer S19 machines from Bitmain; and Riot Blockchain, based in Colorado, also placed an order for 8,000 S19 Pro mining machines.

Earlier, the foreign media outlet "Wu Talk Blockchain" pointed out that Bitmain's flagship mining machine, the S19, uses TSMC's 7-nanometer technology, while other major mining machine manufacturers such as Canaan, MicroBT, and Whatsminer use Samsung chips.