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TSMC chip production cost to increase 20%, Apple and others will affect

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TSMC is expected to raise its costs for advanced sub-7nm and 16nm process technologies that will result in the rise of the overall manufacturing cost, reports Digitimes. It will largely affect Apple’s upcoming products and other clients of TSMC.

Apple is solely dependent on TSMC (Taiwan Semiconductor Manufacturing Company) for all kinds of processors used in its products and its future products are likely to be affected. In addition to Apple, this will also impact companies such as AMD, Intel, Qualcomm, Nvidia, and others. As per the info, the price hike will come into effect starting from 2022.

The company has already made its customers aware of this price hike and it will mainly have an impact on the price of CPUs, GPUs, SoCs, and controllers. The chipmaker has taken this step in order to improve its gross margins and partly to cover the ongoing chip shortage.

Specifically, TSMC has planned to raise the price of its 7nm process by 10%, whereas the wafers processed using 16nm will face a 20% increase. This new price will be applicable for the orders starting December 2021.

TSMC

It is yet to be known how much this price increase will have an impact on the cost of actual products such as CPUs and GPUs manufactured by AMD or Apple. The companies affected by this inflation will rather increase the overall product cost or may reduce their profits.

TSMC’s expected revenue increase after the price inflation

The 5nm and 7nm fabrication technologies of TSMC took about 49% of the company’s total revenue in Q2, 2021, which was 13.29 billion. The 10% increase in their price will make around 600 million more profit in the first quarter of 2022.

On the other hand, then 16nm and 28nm processes contributed about 25% of TSMC’s Q2 revenue. If we roughly figure out the increase in profit of TSMC in the first quarter of 2021 after the rise in price, then the revenue may increase by over 1 billion.

Most of Deng Li's smartphones are from the Huawei ecosystem and his first Huawei phone was Ascend Mate 2 (4G). As a tech enthusiast, he keeps exploring new technologies and inspects them closely. Apart from the technology world, he takes care of his garden.

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Huawei achieves chip manufacturing, start with 14nm chipset

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Huawei leader Xu Zhijun brought us the good news that his company has achieved a breakthrough in chipset manufacturing and the company will kick off this journey with a 14nm chip node and above.

According to the information, the hardware development tool development team and the supported domestic partner made it possible to achieve a breakthrough at the root of the technology.

The team has introduced new architecture, released a cloud-native schematic diagram tool, created a high-speed and high-sensitive PCB layout too, and improved the 2D/3D CAD tool for structural design.

Huawei has developed a chip design EDA tool team alongside Chinese EDA companies to jointly create EDA tools required to process 14nanometer and above semiconductors.

The rotating chairman confirmed that the basic requirement of localizing these development EDA tools for 14nm and above will complete its comprehensive verification in 2023. In the past three years, Huawei has focused on three R&D production lines hardware development, software development, and chip development.

The Chinese tech maker has worked hard to build our tools and completed the replacement of 78 software/hardware development tools, ensuring the continuity of R&D operations.

Breakthrough:

Huawei said its software development tool is planning the entire operations since 2018. It moved to create a complete software toolchain from coding, compilation, testing, security, construction, and release to deployment and achieve the strategy of self-development.

Also to deliver joint research and development with partners to solve the tool continuity question. Huawei also has the strong support of over 100000 software engineers to provide external services based on Huawei Cloud to achieve internal and external consistency.

As of today, Huawei and its partners have released 11 product development tools and all of the partners are equally eligible to use the production line.

Currently, over 200,000 software developers and 197,000 hardware developers are using the tools developed by us or jointly developed with our partners every month. At the same time, 203 companies are willing to pay to use our software tools.

Xu Zhijun said that Have has made a lot of breakthroughs in product development tools over the years. However, the company still facing many challenges, and there are many product development tools that are yet to make breakthroughs.

This is amazing information coming from the company. Aside from mid-range and budget devices, Huawei can utilize the 14nm chip in network equipment and other products with low processing nodes.

Still, we have to wait for more inputs on this matter and the company’s plans for future manufacturing of the chipset.

(source)

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Huawei will continue to sell smartphones in global markets

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Global consumers are excited about the next Huawei smartphones and the company said it will continue to operate in the global market with smartphones and other new products.

Huawei Consumer Business Group COO, He Gang said that Huawei will keep releasing new smartphones, smartwatches, PCs, audio, and other smart products for global consumers.

The latest comment from the COO came during a media interview after the launch of the Huawei P60 series smartphones. He Gang also said that Huawei launched the latest flagship in Spring, which means its products are returning to normal and it’s good news for everyone.

Delayed in the past:

After the U.S. sanctions, Huawei was restricted from purchasing the required hardware technologies to build new smartphones and other devices. The low yield leads to the market share drop.

That’s why Huawei only launched one flagship, P50 Pro in 2021. The phone made it to the global market 6 months after in the first quarter of 2022. On the other hand, the last year’s Huawei Mate 50 Pro made its way to global consumers within 2 months.

These phones were launched without Google Mobile Services (GMS) and Play Store. Therefore, the sales volume in the overseas market remained invisible due to the GMS requirements. Another factor that hit Huawei phones is 5G connectivity. Still, Huawei managed to fill these downsides with new features and powerful camera technologies.

Aside from smartphones, Hauwei is continuously launching new smartwatches and earbuds devices for global customers and it has only increased.

According to the information, Huawei already announced Huawei P60 series will launch on May 9th in Munich and will be accompanied by Huawei Mate X3 and other products.

Huawei P60 series global launch

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Huawei Mate 50 series may not upgrade to second-gen satellite communication

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Huawei first launched satellite communication technology with the Huawei Mate 50 series and the company may not upgrade this phone to second-gen satellite features.

Huawei CBG COO, He Gang gave us the answer that the eligibility to upgrade over second generation satellite is related to the phone’s performance. He may be talking about the hardware as the new devices equip better antennas.

He further added that the company has no current plans to upgrade Huawei Mate 50 and Mate Xs 2 to second-gen satellite communication. However, there is more reason that he mentioned in this matter.

Now the Beidou satellite communication is in the public testing stage, about 30 free sending and receiving are provided every month, and many friends are wondering how long this policy will last. If commercial, what is the approximate price?

He gange said that Huawei is not an operator and cannot operate this satellite communication business. The current state of technology is in the stage of crowd-testing.

This includes testing with multiple organizations and providing such a free service to everyone in the way of crowd testing.

As for the commercial price, how to operate in the future will still be only decided by the operators and not by Huawei. The Huawei COO emphasized that Huawei is actively participating to cultivate a better tech industry and crowd-testing technologies. This will lead to the better of future organizations and achieve technological breakthroughs.

huawei satellite communication

Second-gen satellite:

Huawei P60 series, Mate X3, and Watch Ultimate are equipped with second-generation satellite communication. This allows the users to send and receive an emergency SMS via satellite without a mobile network. However, the first-gen tech only allows one-way SMS.

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