Industry watch: Semiconductor industry turning point beyond 2025

Colley Hwang, DIGITIMES, Taipei 0

TSMC dominates the global market with 90% share in 7nm and 5nm nodes. TSMC has taken initiatives that will allow it to own about 100 units of pricey EUV equipment by the end of 2022. This suggests TSMC still keep competitors at bay in terms of revenues and profits, coupled with advantages in prior depreciation & amortization of assets and R&D expenses.

It is estimated that TSMC's capital expenditure represents 54% of revenue in 2021. TSMC is perhaps the only manufacturer that utilizes capital expenditure as its strategic weapon.

As an enterprise highly dependent on equipment, TSMC has been placing ESG-related topics like carbon neutrality on top of its agenda. TSMC had almost 60,000 employees when the global semiconductor market reached US$553 billion in 2021. If TSMC's market share remains unchanged, how many employees would TSMC have a few years from now when the market size reaches US$1 trillion?

For an enterprise highly dependent on equipment along with a precise and highly efficient system of division of labor, the tough managerial challenge is how to put its employees in a pleasant and meaningful working environment entailing happiness as well as discipline.


Colley Hwang, president of DIGITIMES Asia, is a tech industry analyst with more than three decades of experience under his belt. He has written several books about the trends and developments of the tech industry, including Asian Edge: On the Frontline of the ICT World published in 2019, and Disconnected ICT Supply Chain: New Power Plays Unfolding published in 2020.