The Taiwan Semiconductor Manufacturing Company (TSMC) has released its January revenue, signaling a solid start to the year, which analysts expect will include a semiconductor inventory correction. In addition, a new report from Nikkei says that ZTE Corporation, a Chinese telecommunications company formerly sanctioned by the US government for doing business with Iran, is covertly developing its products on one of TSMC’s most advanced chip-making processes.
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The latter piece of information comes after the United States barred Huawei Technologies Co Ltd, a Chinese consumer electronics and technology business, from utilizing comparable technologies owing to the company’s strong links to the Chinese military.
As ZTE uses TSMC technology for 5G base stations, TSMC reports NT$ 172 billion in revenue for January.
According to TSMC’s sales figures, the business had its best month in terms of dollar amounts and growth rates in the first month of this year. It indicates that the world’s largest contract chip producer, the Taiwanese fab, earned a massive NT$172 billion in January, representing a significant 35.8% increase. Some of the world’s leading technology companies are among TSMC’s clients. Apple Inc., based in Cupertino, California, Qualcomm Incorporated and Advanced Micro Devices, Inc., both based in San Diego, and NVIDIA Corporation, based in Santa Clara, are among them. TSMC’s improvements in semiconductor production techniques, referred to in the industry as “nodes,” have made it the backbone of market advancements throughout the years.
The income for January 2022 represents a significant increase above previous years’ statistics. For example, following the large-scale interruptions ushered in by the continuing pandemic, TSMC brought in NT$126 billion in January 2021, the first month of the fiscal year for the corporation. This development comes as the firm continues to benefit from capacity expansion and increased prices, the latter owing to chip shortages in the sector as a result of the pandemic-induced demand surge.
With TSMC’s business flourishing, Nikkei thinks that ZTE, a Chinese telecoms company, is discreetly establishing a technological edge in the fifth-generation (5G) cellular connection base station market. Telecommunications carriers employ these stations to satisfy customer needs, and according to the newspaper, ZTE’s equipment is built on the 7-nanometer (nm) manufacturing node. It also points out that Huawei’s inability to do business with TSMC as a result of US sanctions has left the field wide open for ZTE.
