TSMC's 3nm process node is currently in pilot production with commercial production in 4Q22, with capacity for the world's most advanced node used in the most cutting edge applications in 5G, HPC/Supercomputing, AI/ML, AR/VR, Autonomous Driving, EV, IoT/Automation all but sold out, leading to structural and perpetual growth for the leading frontend semiconductor companies and service providers

In Moore We Trust

TSMC is steady and making all time highs. Scooped up Frontken again at RM3.2+

Taiwan Semiconductor Mfg. Co. Ltd.
658.00 TWD
−4.00 (0.60%)today
19 Jan, 10:18 am GMT+8 • Disclaimer
TPE: 2330

Share price info: https://g.co/finance/2330:TPE

TSMC's profit growth and capital expenditures is just beginning...

Multi-year 15-20% compounded annual growth rate (CAGR) to come

https://asia.nikkei.com/Business/Companies/TSMC-plans-to-spend-record-44bn-on-capacity-expansion-in-2022

TSMC plans to spend record $44bn on capacity expansion in 2022
Nikkei
Updated on January 13, 2022 17:44 JST

TSMC, which supplies to almost all the world's leading chip developers, has earmarked between $40 billion and $44 billion for capital expenditure this year, much higher than its already record-breaking spending of $30 billion for 2021. This puts the chipmaker on track to meet its plan of investing $100 billion over the three years till 2023.

TSMC CEO C.C. Wei said the overall foundry industry, as the business making chips for the others is known, will grow 20% on the year in revenue terms, and that TSMC will outperform this with growth in the mid- to high-20% range. The CEO also increased the forecast for the company's compound annual growth rate for "the next several years" to between 15% and 20% in U.S. dollar terms, higher than the previous forecast of about 10%.

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The Taiwanese chip titan told clients last August that it will hike prices by up to 20% for its various manufacturing services, citing its capital spending plans. TSMC's biggest price adjustment in a decade started to have an impact in the last quarter of 2021, and could boost the company's profit margin for 2022, according to multiple analysts' estimates, despite concerns that the year-long boom in chip demand could start to slow.

@ newbie8080, I don't recall reading Frontken expressly stating that they are involved in the 3nm design stage, but I do recall Management stating Frontken will be involved at the design stage with new nodes. As each new node requires massive investment, all parties IC design, service providers, suppliers will be involved at the beginning so they are ready-to-go at any time. As for revenue contributions for Frontken however, that will come when the 3nm node begins production (a bit at the pilot phase now, then of course meaningfully when 3nm enters full commercial production, which currently seems to be on track for 4Q22 as guided)

The demand for leading-edge semiconductor chips will continue to grow. And TSMC is the world's most advanced foundry. So TSMC will continue to grow, and as long as it grows, Frontken grows

https://www.digitimes.com/news/a20211229VL205/2022-forecast-ic-manufacturing-semiconductor.html

Global semiconductor industry forecasts for 2022
DIGITIMES, Taipei
Thursday 30 December 2021

Wafer foundry manufacturers sales likely to remain strong due to tight supply

Demands started chasing after chip supplies in the second half of 2020, and the gap between demands and supplies started to widen due to new orders from applications such as 5G communications and customized chips. Uncertainties such as the Omicron variation pandemic, geopolitical tension, and US-China technology competition are likely to put a damp on supply growth. Eric Chen, semiconductor analyst of DIGITIMES Research predicts that sales of global wafer foundry manufacturers are likely to grow 15% in 2022 and may top $110 billion in revenues.

5G smartphone silicon content increase to drive demand for foundry service higher

The penetration of 5G smartphones has reached 38% in 2020 and is expected to hit 48-50% by the year-end of 2021. Since 5G smartphones need more radio frequency front end modules (RFFEM) than 4G smartphones, and those supporting mmWave functions need to have 2-3 extra mmWave antenna modules, the increase of silicon content in smartphones will also push up demand for wafer foundry services, according to Chen.

Demand for digital transformation is here to stay, no sign of weakening for foundry service sales

The COVID-19 pandemic accelerated digital transformation over the past two years. Work from home, virtual conference, and remote learning have driven up the demand for cloud computing, laptops, and servers, and hence the sales growth of related semiconductor products. Demands for CPU, GPU, AI accelerator (including FPGA) foundry services will remain strong in 2022 because trends such as virtual conferences, live streaming, and large capex of data centers are likely to stay, said Chen.

EV, IoT, 5G infrastructure, HPC form robust long-term demand to support foundry

Long-term demands for customized chips in IoT, 5G infrastructure, HPC, and EV applications, like ADAS, autonomous driving, V2X, in-Vehicle Infotainment, will provide robust growth momentum for chip foundry services, said Chen.

IDMs outsourcing will continue to increase

IDMs will increase the percentage of their outsource capacities in 2022 and beyond, as processing nodes continue to upgrade. Currently, IDMs outsource 20% of their supplies to foundry service providers, according to Chen.

https://9to5mac.com/2021/12/02/3nm-iphone-ipad-mac-chips-tsmc/

TSMC begins pilot production of 3nm chips, could be used in 2023 iPhones and Macs
Dec 2, 2021 8:52 am PT

TSMC has kicked off pilot production of chips built using N3 (namely 3nm process technology) at its Fab 18 in southern Taiwan, and will move the process to volume production by the fourth quarter of 2022, according to industry sources.

Frontken has been picked numerous times -
https://klse.i3investor.com/blogs/stock_pick_2022/2022-01-01-story-h1596517693-Stock_Pick_Year_2022_Stock_and_Number_of_Picks_Quantities_v2.jsp

It is not surprising as Frontken is the only company directly involved in front-end semiconductor as a highly specialised service provider to the world's most advanced foundry, TSMC

Congratulations to all loyal Frontken shareholders. Share price broke through RM4 conclusively
When you buy a Perpetual Growth Company, you can never go wrong

In Frontken we trust

Bought another batch 3.6x following my 10% from top rule

For a Perpetual Growth Company buying the dip is the best strategy

Another double digit year over year performance

Frontken The Perpetual Growth Company

Looks like Frontken will break through all time high RM4 soon. Patience always pays off for a perpetual growth company

The latest bought-on-dip shares (10% from most recent high RM4) are also in the green at the moment. Very happy to buy more if it drops lower or keep current holdings and ride the growth

With the latest TSMC 3Q2021 results and expansions in place, it is proof that TSMC's leading semiconductor chips and process node technology are unsurpassed. So long as TSMC's grows and Moore's Law holds, so will Frontken

Frontken the Perpetual Growth Company

https://www.reuters.com/technology/taiwans-tsmc-posts-138-rise-q3-profit-global-chip-demand-surge-2021-10-14/

Taiwan's TSMC posts 13.8% rise in Q3 profit on global chip demand surge
October 14, 2021 | 1:50 PM +08
Last Updated 3 minutes ago

- Q3 profit T$156.3 bln vs T$149 bln market forecast
- Q3 revenue up 22.6% on year in U.S. dollar terms

TAIPEI, Oct 14 (Reuters) - Taiwan chip giant TSMC (2330.TW) posted a 13.8% jump in third quarter profit on Thursday on the back of booming demand for semiconductors to power smartphones and other gadgets during the COVID-19 pandemic amid a supply crunch.

July-September net profit for TSMC, the world's largest contract chipmaker and a key supplier to Apple Inc (AAPL.O), came in at T$156.3 billion ($5.56 billion), well ahead of the T$149 billion average of 22 analyst estimates compiled by Refinitiv.

Advanced chips made by TSMC, formally known as Taiwan Semiconductor Manufacturing Co , are used in everything from high-end smartphones like Apple's newly unveiled 5G iPhone 13, to artificial intelligence, cars and a wide variety of lower-end consumer goods.

https://www.digitimes.com/news/a20211006VL201.html

TSMC to expand capacity for both advanced and mature nodes
DIGITIMES staff
Wednesday 6 October 2021

TSMC to expand 7nm and 28nm fab capacities: TSMC is poised to comprehensively expand production capacities for both its 7nm and 28nm process technologies, in addition to its planned 5nm process expansion, which may prompt the foundry to raise again its capex outlook this year, according to industry sources.

Frontken is the only true frontend semiconductor stock on Bursa. The others are backend or other downstream players. Also the others are benefitting from the one-off semiconductor shortage in the automotive / EV sector, causing prices to rise exponentially, which based on the many examples, are bound to normalise. TSMC's leading edge process nodes which makes up a majority of its revenue, serve the high-end 5G smartphones and HPC, and is thus not much exposed to the one-off profits

Frontken the Perpetual Growth Company

https://www.theedgemarkets.com/article/global-semiconductor-sales-297-yoy-august-us472b-says-sia

Global semiconductor sales up 29.7% y-o-y in August to US$47.2b, says SIA

October 05, 2021 10:07 am +08

KUALA LUMPUR (Oct 5): Global semiconductor industry sales rose 29.7% year-on-year (y-o-y) in August 2021 to US$47.2 billion (about RM197.27 billion) from US$36.4 billion a year earlier, said the US-based Semiconductor Industry Association (SIA).

In a statement on its website on Monday, the SIA said the figure was 3.3% more than the July 2021 total of US$45.7 billion.

https://www.cnbc.com/2021/10/03/semiconductor-chip-shortage-could-extend-through-2022-marvell-ceo.html

Semiconductor chip shortage could extend through 2022, Marvell CEO says
PUBLISHED SUN, OCT 3 2021 10:18 AM EDT

KEY POINTS
- The “painful period” of the semiconductor chip shortage could extend beyond 2022, Marvell Technology CEO Matt Murphy said during a CNBC Technology Executive Council event on Thursday.

- Other chip industry executives, such as AMD CEO Lisa Su, have signaled that additional manufacturing capacity will begin addressing those issues next year.

- The shortage has harmed several sectors, but perhaps no more than the automotive industry where production has been slowed due to a lack of chips, leading to drops in sales.
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While several chip producers have announced plans to expand factory capacity, Murphy, who noted his firm is fabless and works with contract manufacturers on its designs, said “that’s not going to kick in until 2023 and 2024 — so there’s this painful period.”
/

https://www.cnbc.com/2021/09/29/asml-predicts-sales-boom-as-demand-for-chip-making-machines-surges.html

Critical chip machine maker ASML predicts a sales boom over the next decade
PUBLISHED WED, SEP 29 20216:01 AM EDTUPDATED 30 MIN AGO

KEY POINTS
- The Dutch company now expects annual revenue to hit 24-30 billion euros ($28-$35 billion) by 2025, with gross margins up to between 54% and 56%.

- The prediction is significantly higher than the 15-24 billion euro range it had previously forecast.

- “We see significant growth opportunities beyond 2025,” the company said, adding that it expects to achieve an annual revenue growth rate of around 11% between 2020 and 2030.

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The Dutch company, which makes the lithography equipment that’s used to produce the world’s most advanced chips, said in a statement on its investor day that it now expects annual revenue to hit 24-30 billion euros ($28-$35 billion) by 2025, with gross margins up to between 54% and 56%.

The prediction is significantly higher than the 15-24 billion euro range it had previously forecast.

“We see significant growth opportunities beyond 2025,” the company said, adding that it expects to achieve an annual revenue growth rate of around 11% between 2020 and 2030.

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ASML said “global megatrends in the electronic industry” coupled with “a highly profitable and fiercely innovative ecosystem” are expected to continue to fuel growth across the semiconductor market.

It added that growth in semiconductor markets and “increasing lithography intensity” are driving demand for its products and services.

Headquartered in Veldhoven, ASML is the only company in the world capable of building the sophisticated machines that chip manufacturers need to make the most advanced chips. These chips are faster and more efficient than their predecessors.

Customers of ASML include Samsung and Taiwan Semiconductor Manufacturing Co., which makes chips for the likes of Apple.

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ASML’s importance
“ASML is absolutely critical to the entire semiconductor ecosystem,” Peter Hanbury, a partner at management consultancy Bain & Company with a focus on semiconductors, told CNBC in June. “In some ways, it’s just as important as TSMC.”
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The company stands to benefit as chipmakers invest heavily in new facilities and equipment as part of an effort to meet surging demand. TSMC, for example, has pledged to spend $100 billion in the next three years to expand its capacity and alleviate the current bottlenecks.

The decline in share price is likely due to the knee-jerk reaction to the power outages which have affected China-based producers. The outages will only worsen the semiconductor shortage, increasing already record high IC chip lead times, and further increasing already higher semiconductor chip selling prices, which would of course benefit TSMC as the world's largest and most advanced foundry, and by extension Frontken which provides frontend semiconductor equipment precision cleaning services

The drop has triggered the buy-the-dip threshold (10% decline from most recent high) and have added position. With a Perpetual Growth Company like Frontken, buying every dip is feasible because it will continue to grow, and as long as it grows share price will follow, and this has proven to provide the best returns over time and over the long run

https://fortune.com/2021/09/28/china-energy-crisis-chip-shortage-supply-chain-delay/

Supply chain delays are bad—China’s rolling power outages will make them worse

September 28, 2021 11:33 PM GMT+8

China’s rolling power outages are the latest threat to global supply chains, which are still reeling from last year’s pandemic lockdowns. This week, ten Taiwanese semiconductor manufacturers warned the Taiwan stock exchange that production in factories in China's Jiangsu province had been suspended for the week, following government orders to curb electricity usage. Several suppliers for Apple and Tesla announced temporary suspension of production facilities, too.

“Production curbs related to Beijing’s green policy measures and recent power outages will substantially constrain industrial production in China,” says Wang Lisheng, an economist at Nomura. “This will weigh on exporters, who may need more time to deliver orders because of forced power shortages.”

The slowdown in semiconductor manufacturing will pile on top of an ongoing chip shortage—kickstarted by an unexpected post-pandemic surge in demand in January—as well as ballooning freight rates on shipping containers. The cost of shipping goods from China to the U.S. has increased by almost 1,000% since the pandemic began.
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Note that 65% of Frontken's revenue is derived from Taiwan (i.e. TSMC) in FY2020 with no exposure to China. The power outages will only make the chip shortage worse, possibly increasing lead times and thus putting upward pressure on semiconductor chip selling prices

https://www.bloomberg.com/news/articles/2021-09-22/the-chip-crunch-grows-worse-as-wait-times-hit-record-21-weeks

The Chip Crunch Grows Worse as Wait Times Hit Record 21 Weeks

September 22, 2021, 9:04 AM GMT+8

The amount of time it’s taking for chip-starved companies to get orders filled stretched to 21 weeks in August, indicating the shortages that have crippled auto production and held back growth in the electronics industry are getting worse.

Chip lead times, the gap between ordering a semiconductor and taking delivery, increased by 6 days to about 21 weeks in August from the previous month, according to research by Susquehanna Financial Group. That gap was already the longest wait time since the firm began tracking the data in 2017.

While lead times for analog and Broadcom Inc. chips got worse, there are positive signs for power management chips and optoelectronic components, Susquehanna analyst Chris Rolland said in a research note.

Semiconductor shortages have hampered recovery from the Covid-19 pandemic, particularly for carmakers. AlixPartners, a global consulting firm, estimated the global automotive industry will lose about $110 billion in sales.

Have entered since middle of July and added on every dip. Very satisfied with the returns so far and $4 is always a nice milestone to achieve. Will continue to hold and add as long as Moore's Law and the unquenching thirst for TSMC's leading edge semiconductor chips continues

newbie8080, based on the report and analyst, the process node will be N5A (presumably N5 Automotive) which will start production in 3Q22 for EV vehicles (especially those with self-driving features)

In any case, like the most advanced 5G smartphones, the need for faster/more powerful/more efficient chips will only grow larger. Now that EV has hit an inflection point in many parts of the developed world, the EV adoption and rollout will only gain further pace ('exponential' growth) and that will mean another avenue of growth for TSMC's advanced nodes

EV will be another growth area for TSMC

https://focustaiwan.tw/sci-tech/202109200009

TSMC to benefit from electric vehicle development: analyst
09 / 20 / 2021 05:12 PM

Taipei, Sept. 20 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, will benefit from the development of more advanced electric vehicles because its chips can satisfy the cars' high-performance computing (HPC) needs, according to an expert in the field.

In an interview with CNA, Ray Yang (楊瑞臨), a supervisor at the Industrial Technology Research Institute's Industrial Economics and Knowledge Center, said sophisticated chips are needed to power the vehicles, especially those with self-driving functions.
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Among the three, only TSMC and Samsung are able to provide chips made using the 5 nanometer process for EV use, he said.

In particular, TSMC has been developing the "N5A" technology since the beginning of this year. It is based on TSMC's current 5nm process, the most advanced technology being mass produced by the Taiwanese chipmaker.

Yang said the N5A process, scheduled to hit the market in the third quarter of 2022, is expected to bring the HPC chips usually used to produce supercomputers to EV development, giving it a chance to capitalize on EV market opportunities.

According to a recent study by Digitimes Research, as governments aggressively promote EVs as part of their environmental policies, EV sales are expected to grow at least 17 percent a year over the next five years and hit 9.74 million units in 2025.

Among international EV brands, Tesla has unveiled D1 chips made using the 7nm process -- a less advanced technology than the 5nm process -- that can make 362 trillion "floating-point" (the most common way real numbers are represented in computers) per second.

The chips will serve as AI training machines, helping strengthen self-driving capabilities.

TSMC CEO C.C. Wei (魏哲家) has said EVs will become a complicated HPC platform, and the semiconductor industry is expected to take control of a wide range of applications including sensors, digital cabins, and wireless communications.

Beyond the N5A process, TSMC can supply complementary metal-oxide-semiconductors for imaging sensor production by using its 28nm, 22nm and 16nm processes for EV use, a move expected to help the company secure a larger share of the market, Yang said.

In mid-July, TSMC said it was assessing the feasibility of setting up production sites in Japan and Germany, and Yang said the potential moves reflected TSMC's ambition to target the auto markets in those two countries.

In terms of the Japanese market, Yang said TSMC is likely to supply chips from a factory in the country for clients such as Sony Corp.

https://www.digitimes.com/news/a20210915VL202.html

TSMC forecast to post 24% revenue growth in 2021, says IC Insights
Jessie Shen, DIGITIMES, Taipei
Wednesday 15 September 2021

TSMC is forecast to see its revenue in the second half of this year grow 14% from the level in the first half, with revenue for all of 2021 set to represent a 24% on-year surge, according to IC Insights.

IC Insights released recently its compilation of third-quarter sales growth expectations for the top-25 semiconductor suppliers. For the third quarter of this year (ending in September), sales growth outlooks for the top-25 suppliers range from 16th-ranked Sony's 34% increase at the high end, to Intel's 3% decline on the low end.

In the second quarter of 2021, TSMC was the third-largest semiconductor company in terms of sales and the largest semiconductor foundry in the world. It is the go-to manufacturer for ICs based on leading-edge 7/5nm process technologies, which are in high demand and collectively accounted for about half of TSMC's second-quarter revenue, IC Insights said.

TSMC expects its third-quarter sales to climb 11% sequentially. IC Insights forecast the foundry's sales will rise another 4% in the fourth quarter.
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So long as Moore's Law holds, we hold

Frontken The Perpetual Growth Company

https://www.thestar.com.my/business/business-news/2021/09/15/global-fab-equipment-spending-to-hit-almost-us100bil-in-2022

Global fab equipment spending to hit almost US$100bil in 2022
Wednesday, 15 Sep 2021 10:10 AM MYT

PETALING JAYA: Global semiconductor equipment investments for front end fabs in 2022 are expected to reach nearly US$100bil to meet soaring demand for electronics after topping a projected US$90bil this year, both new records, SEMI said in its World Fab Forecast report.
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“The foundry sector will account for the bulk of fab equipment investments in 2022, with more than US$44bil in spending, followed by the memory sector at over US$38bil.

“Both DRAM and NAND also show large increases in 2022 with jumps in spending to US$17bil and US$21bil, respectively,” SEMI said.
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Frontken The Perpetual Growth Company

https://www.digitimes.com/news/a20210910VL200.html

TSMC posts increased August revenue
Friday 10 September 2021

TSMC has announced consolidated revenue of NT$137.43 billion (US$4.97 billion) for August 2021, up 10.3% sequentially and 11.8% on year.

TSMC is on track to meet its revenue guidance for the third quarter, according to market watchers. The foundry has enjoyed a ramp-up in its shipments for the upcoming iPhones, which led to its revenue increases in August, the watchers said.

TSMC expects to post revenue of between US$14.6 billion and US$14.9 billion in the third quarter, which is an 11% sequential increase at the midpoint. The forecast is based on the exchange rate assumption of US$1 to NT$27.90.

TSMC saw its revenue hit a record high of NT$372.15 billion in the second quarter.

TSMC disclosed its cumulative 2021 revenue through August totaled NT$996.54 billion, rising 17.2% from a year earlier.

TSMC in July revised upward its revenue growth outlook this year to above 20%.
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As long as Moore's Law holds, there will be both more advanced semiconductors AND more semiconductor equipment, which will mean continuous growth for Frontken which is a highly specialised frontend semiconductor service provider to TSMC the world's leading foundry

https://wccftech.com/tsmc-can-earn-100-billion-revenue-in-2025-letting-it-to-catch-up-to-intel/

TSMC Can Earn $100 Billion Revenue In 2025, Letting It To Catch Up To Intel

Sep 7, 2021 12:36 EDT

The Taiwan Semiconductor Manufacturing Company (TSMC) will cross the $100 billion revenue mark in 2025, believes investment bank JPMorgan Chase, according to a report from Taiwan. The bank's prediction follows an earlier one from Citigroup, which is even more optimistic for the company, a fact evident in its belief that TSMC's revenue will cross the $100 billion mark a year earlier in 2024. This optimism follows recently reported price increases by the company, as it looks to beef up its gross margins and fund capital expenditures in a growing industry.

TSMC's Revenue Growth To Touch 17% Over Next Five Years Due To Price Increases And High Performance Computing (HPC) Demand
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JPMorgan's analysis, which comes courtesy of the United Daily News (UDN), lists down four factors for its belief that TSMC stands to earn $100 billion in 2025. The first of these is strong demand for high performance computing (HPC) platforms which, according to the bank, are facing stronger than expected demand and will therefore increase their percentage in the company's revenue pie.

Secondly, it believes that TSMC is in a commanding position for smartphones, with its market share set to grow in the coming years. TSMC's packaging technologies and its strong wafer ecosystem are the final two reasons behind JPMorgan's analysis, with the former involving 2.5 and 3D technologies and the latter providing the chipmaker with stronger bargaining power.

The bank also believes that for HPC products, TSMC's revenue is set to grow at a staggering compound annual growth rate (CAGR) of 30% from 2020 to 2025. This revenue will stand at $50 billion in 2025, believes JPMorgan, and by 2023, it will surpass smartphone revenue to become the single largest contributor to TSMC's sales.

It also believes that the company's revenue will grow by 18% next year and that the new 3nm process, expected to enter mass production in 2022, will grow the fab's revenue by 23% in 2023. TSMC's 3nm process is thought to be in high demand by big-ticket firms such as Apple Inc and Intel Corporation for their smartphone and personal computing processors.

According to JPMorgan, the CAGR for TSMC's overall revenue growth from 2020 to 2025 will stand at 17%, and the 2023 growth estimate matches the estimate from HSBC.

In a report which surfaced late last month, HSBC had estimated that TSMC stands to grow its revenue by 22% following a 15% average price increase and push its gross margin to at least 53%.
/

https://koreajoongangdaily.joins.com/2021/09/03/business/tech/Samsung-Electronics-TSMC-foundry/20210903183400488.html

[EXCLUSIVE] Samsung raises foundry chip prices for Qualcomm, Tesla
Friday, September 3, 2021

Samsung Electronics has notified key clients of price increases of up to 20 percent for contract chip fabrication, following hikes by Taiwanese rival TSMC that are some of the steepest in its history.

“Samsung Electronics sent a notice of unilateral price hikes on chip products last month to include all of its foundry clients -- from Qualcomm and Tesla to smaller local chipmakers,” said a sales executive from a Seoul-based chipmaker whose company received the notification.

The source said price increases of up to 20 percent will be charged starting early next year.
“The maximum rate suggested is 20 percent, but specific rates for each company could differ depending on the type of chip after each party negotiates,” the source said.
/

In Moore We Trust

https://www.taipeitimes.com/News/biz/archives/2021/09/01/2003763554

Chip crunch to further lift foundries’ revenue in Q3
By Lisa Wang / Staff reporter
Wed, Sep 01, 2021 page12

The world’s top 10 foundries, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), are expected to see accelerated revenue growth this quarter, as a persistent chip crunch drives prices even higher, market researcher TrendForce Corp (集邦科技) forecast yesterday.

The Taipei-based researcher expects the top 10 foundries’ sequential revenue growth this quarter would outpace the 6.2 percent growth they posted last quarter.
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TSMC’s revenue increased 3.1 percent quarter-on-quarter to US$13.3 billion last quarter, which gave it a market share of 52.9 percent, TrendForce said.

TSMC’s revenue growth lagged behind the other foundries in the top 10 list because of its stable pricing strategy and capacity losses after a power outage at its Fab14 P7 in the Southern Taiwan Science Park (南部科學園區) in April and a brief production disruption when the Singda Power Plant (興達電廠) in Kaohsiung temporarily went offline in May.

Samsung Electronics Co ranked the second-biggest foundry in the world with a market share of 17.3 percent.

The South Korean company’s revenue expanded 5.5 percent quarterly to US$4.33 billion after its fab in Texas resumed full production in April after a winter storm in February brought its production to a halt.

United Microelectronics Corp (聯電) ranked third with a market share of 7.2 percent.

The Taiwanese company’s revenue climbed 8.5 percent quarterly to US$1.82 billion last quarter, benefiting from strong customer demand for power management ICs, Wi-Fi and driver ICs used in OLED products, as well as a 5 percent price hike, TrendForce said.
--

The measure to follow would be TSMC's business (i.e. profitability) not TSMC's share price

If you track share price movements, Frontken's has diverged from TSMC's. TSMC has underperformed (especially recently) due to China's clampdown on Tech companies (TSMC may be in Taiwan, but we know Taiwan-China-US have an uneasy relationship, causing spillover to TSMC)

If you are looking at share price correlation, then Frontken's movement is more similar to semiconductor equipment manufacturers (see: ASML), and it makes sense after all Frontken services these equipment (front-end semiconductor)

Taiwan Semiconductor Co. Ltd. (NYSE:TSM) is currently up by 5.65% in US trading

https://focustaiwan.tw/business/202108250007

TSMC shares up on price increase; company declines to comment
08/25/2021 11:42 AM

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The Chinese language Commercial Times said TSMC's product price hike is expected to start from the first quarter of next year.

It said prices for chips made using mature processes are expected to go up 15-20 percent and those for chips made from advanced processes are likely to rise by 10 percent.

Citing anonymous industrial sources, the report said that with global demand for semiconductors on the rise despite the COVID-19 pandemic, a supply shortage could continue into 2023 or even 2024, clearing the way for TSMC's product price hike.

https://www.digitimes.com/news/a20210825PD209.html

TSMC to raise quotes for advanced, mature process technologies by 10-20%
DIGITIMES
Wednesday 25 August 2021

TSMC has notified clients an about 10% price hike for its sub-16nm process manufacturing, with the new prices set to be effective starting 2022, according to sources at IC design houses.

In Moore We Trust

Frontken the Perpetual Growth Company

Frontken provides maintenance services (i.e. precision cleaning) for frontend semiconductor equipment

More equipment equals more precision cleaning equals more business

https://www.thestar.com.my/business/business-news/2021/08/24/semiconductor-equipment-billings-for-north-american-manufacturers-jumped-498-y-o-y-to-us386bil-in-july

Semiconductor equipment billings for North American manufacturers jumped 49.8% y-o-y to US$3.86bil in July

Tuesday, 24 Aug 2021 11:14 AM MYT

PETALING JAYA: North America-based semiconductor equipment manufacturers posted US$3.86bil in billings worldwide in July 2021, according to the July Equipment Market Data Subscription (EMDS) Billings Report published today by SEMI.

“The start of the second half of 2021 further extends a robust sales uptrend for North America-based semiconductor equipment manufacturers,” SEMI president and CEO Ajit Manocha said in a statement.

“Capacity demand across the semiconductor manufacturing supply chain continues its strong growth, reflecting the role of semiconductor equipment as a key engine of digital transformation globally,” Ajit said.

The SEMI Billings report uses three-month moving averages of worldwide billings for North American-based semiconductor equipment manufacturers.

https://finance.yahoo.com/news/nvidia-q2-earnings-2022-193847897.html

Nvidia Q2 revenue jumps 68% on strength of gaming and data center businesses

Thu, August 19, 2021, 4:28 AM

Here are the most important numbers from the report compared to what analysts were expecting, as compiled by Bloomberg.

Revenue: $6.51 billion versus $6.33 billion expected
EPS: $1.04 versus $1.01 expected
Data Center: $2.37 billion versus $2.28 billion expected
Gaming: $3.06 billion versus $2.96 billion expected
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And Oppenheimer’s Rick Schafer sees that continuing into Nvidia’s the second half of the company's fiscal year.

“Despite constraints, we see gaming leading [fiscal Q2] growth with continued momentum into 2H led by new gaming titles, back-to-school, and holiday,” Schafer wrote in an analyst note ahead of Nvidia’s earnings. “[Data center] demand accelerates into [second half] with hyperscale spending and it increasingly favors Al neural network workloads/services.”

And while the average selling price of Nvidia’s cards may drop, as less expensive units become more readily available, BofA Global Research’s Vivek Arya says that the company’s gaming segment will continue its double-digit growth throughout fiscal 2022.
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https://www.bloomberg.com/news/articles/2021-08-19/applied-materials-tops-views-in-sign-chip-boom-remains-strong?utm_source=google&utm_medium=bd&cmpId=google

Applied Materials Tops Estimates, Underscoring Chip Strength

Fri, August 20, 2021, 5:02 AM·2 min read

(Bloomberg) -- Applied Materials Inc., the biggest maker of machinery used to manufacture semiconductors, topped earnings estimates and gave a rosy forecast in the latest sign that the chip boom is going strong.

Revenue will be roughly $6.3 billion in the three-month period ending in October, the Santa Clara, California-based company said Thursday. Analysts have estimated $6.04 billion on average, according to data compiled by Bloomberg. Profit will be $1.87 to $2.01 a share in the fiscal fourth quarter, excluding some items, compared with an average estimate of $1.81.

Chipmakers have filled Applied Materials’ order books as they rush to add production capacity. A surge in demand for semiconductors has led to unprecedented shortages of the vital electronic components, forcing the industry to play catch-up.

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“We’re in the biggest inflection of our lifetimes,” he said [Chief Executive Officer Gary Dickerson]. “We see strength through the end of the year and into next year.”

Some investors are concerned that previous patterns will return. In the past, spikes in equipment demand have been followed by painful contractions. Applied Materials’ revenue shrank 15% in 2019. Dickerson said the market for semiconductors has expanded into so many new areas that “the industry’s future will not be like the past.”

Applied Materials’ customers include Samsung Electronics Co., Taiwan Semiconductor Manufacturing Co. and Intel Corp., making its projections a window into the spending plans and confidence levels of some of the biggest companies in technology.

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Two years of slowing investment -- and extra caution during the pandemic’s peak last year -- mean that many semiconductor makers can’t keep up with orders, particularly for car components. It takes months to build and install equipment made by Applied Materials and other chip-equipment producers. Machines being built now won’t add to output until 2022. Earnings climbed to $1.90 a share in the third quarter, excluding some items. That topped an average analyst estimate of $1.77. Sales rose 41% to a record $6.2 billion, compared with an estimate of $5.94 billion.

The company has said it sees the total market for chip factory equipment growing to the high $70 billion range this year. That will expand again in 2022 to bring the two-year total to more than $160 billion, Applied Materials has projected.

Proud to say I bought more than Director during this retracement

https://www.straitstimes.com/business/global-chip-shortage-may-last-until-2023-says-chipmaker-infineon-ceo

Global chip shortage may last until 2023, says chipmaker Infineon's CEO

[16 August 2021] PUBLISHED 10 HOURS AGO

BERLIN (BLOOMBERG) - The global chip shortage that is hampering companies from carmakers to computer manufacturers may linger for years, according to Germany's biggest semiconductor company, Infineon Technologies.

The scarcity "may stretch into 2023" in areas where capacity expansion is slow to catch up with consumer demand, Infineon chief executive Reinhard Ploss said in an interview with Frankfurter Allgemeine Zeitung.

"Building new facilities and clean rooms in which the silicon wafers are processed into chips can take two to two and a half years; upgrading existing facilities three-quarters to one year," he said.
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In Moore We Trust

Frontken Corporation is a Perpetual Growth Company (PGC)tm

https://www.bloomberg.com/news/articles/2021-08-10/chip-delivery-time-surpasses-20-weeks-in-no-sign-shortage-easing

Chip Delivery Time Surpasses 20 Weeks in No Sign Shortage Easing

August 11, 2021, 12:09 AM GMT+8

The amount of time it’s taking for chip-starved companies to get orders filled has stretched to more than 20 weeks, indicating the shortages that have held back automakers and computer manufacturers are getting worse.

Chip lead times, the gap between ordering a semiconductor and taking delivery, increased by more than eight days to 20.2 weeks in July from the previous month, according to research by Susquehanna Financial Group. That gap was already the longest wait time since the firm began tracking the data in 2017.

Shortages of microcontrollers, logic chips that control functions in cars , industrial equipment and home electronics, jumped in July, according to the report. Lead times for that type of chip are now 26.5 weeks, compared with a typical range of six to nine weeks. In better news for industries that rely on semiconductors, the lead times were reduced for power management chips, semiconductors that regulate the flow of electricity in everything from smartphones to solar power generation.

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Insights:

The lead times for 'logic' chips (the type that is made by TSMC) have increased to a record 26.5 weeks

On Friday 13/8/21, the share price of leading fabless semiconductor companies have increased:
AMD (+3.80%)
Nvidia (1.42%)
Qualcomm (1.01%)
*Both AMD and Nvidia are led by Taiwanese as is TSMC

The Semiconductor super cycle has just begun and the best is yet to come with the mega trends of 5G, AI / Machine Learning, Autonomous Driving / EV, IoT, IR4.0

Source: appleinsider . com/articles/21/08/12/iphone-13-to-launch-in-september-with-a15-bigger-batteries-trendforce-says

By Mike Peterson | Aug 12, 2021

Apple is likely to release all four models of its new "iPhone 13" lineup in September with larger batteries, an updated chipset, and expanded mmWave 5G support, according to research firm TrendForce.

TrendForce on Thursday outlined its expectations for the device, which it says will return to a typical September release. Driven by the new models, the research firm believes that total iPhone shipments could surge 30% year-over-year in the third quarter of of 2021.
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