In 2019, Huawei brought 36.1 billion yuan in revenues for TSMC with an increase of more than 80% year-on-year, whose share of TSMC’s overall revenue rose from 8% to 14%. It makes Huawei become the second largest customer of TSMC, after Apple.
The industry believes that if Huawei is imposed further sanctions by the US, it will be a concern for TSMC’s future development of business.
Data shows that Apple brought 58.3 billion yuan in revenues for TSMC in 2019, accounting for 23% with an increase of 1 percentage point year-on-year.
Due to the expansion of demand brought by its own business growth and the prevention against US sanctions, Huawei has greatly increased inventories of chips and raised the stock level to more than 100 days, what makes Huawei’s share soar.
TSMC achieves a global market share of 52% on the silicon foundry market. Furthermore, revenues of 7nm and 5nm process are both over NT $ 100 billion, far superior to its competitors in the high-end process market.