According to the Taiwan Media Central News Agency, TSMC's 2019 annual report recently announced that Huawei, as the second largest customer, accounted for 14% of TSMC's revenue last year, reaching 152.876 billion yuan (TWD, the same below). Industry insiders believe that if the United States strengthens its export controls on Huawei, it will become a hidden danger for TSMC in the future.

It is reported that TSMC's revenue last year was about 1.07 trillion yuan, a record for ten consecutive years, and last year ’s largest customer contribution was 247.213 billion yuan, an annual increase of 10%, and the proportion has climbed from 22% to 23%. TSMC's largest customer.

However, more concerned about the market is Huawei, the second largest customer of TSMC, contributing 152.876 billion yuan, an increase of nearly 69 billion yuan, an increase of more than 80%.

The industry believes that in addition to the increase in smartphone sales and the increase in global market share, Huawei has made a large inventory of reserves in order to cope with the risks of U.S. export controls, prompting Huawei to surge in purchases of TSMC last year.

As Huawei's share of TSMC's performance rises, whether the United States will increase its export controls on Huawei and further require foreign companies that use U.S. chip manufacturing equipment to obtain permission before supplying to Huawei, or whether Huawei will turn to SMIC and other news Received market attention.

Liu Deyin, chairman of TSMC, said in a recent online briefing that the United States is discussing related regulatory measures because of the impact on the industry, the American Semiconductor Industry Association has held opposing views, and TSMC hopes that there will be no restrictions. In addition, Liu Deyin believes that if the United States expands its control, it will have a short-term impact on TSMC's operations, but as customers grow and decline, the impact on TSMC's mid- and long-term operations should be limited.

Regarding the news of Huawei's transfer to SMIC, Wei Zhejia, president of TSMC, believes that SMIC cannot compete for market share because TSMC provides the best technology and services in all regions and is very competitive. TSMC works closely with customers. Not only will it not lose its market share, but it may also expand its market share.

Industry insiders agree with Wei Zhejia, expecting Huawei's turn to SMIC to have limited impact on TSMC. However, it also pointed out that Huawei is currently the second largest customer of TSMC, and is one of the leading manufacturers to adopt TSMC's advanced process technology. If the United States strengthens its export control on Huawei, it will have an impact on TSMC's short-term operations and is a hidden danger for TSMC .