TSMC faces difficulty replicating to integrating nearly 400 top suppliers around the world

The United States passed a chip bill of up to 280 billion US dollars (about 1.89 trillion yuan) in July this year, aiming to improve its domestic chip manufacturing capacity. However, some things are not achieved by throwing money alone.

Taiwan and China emphasized that TSMC alone has nearly 400 suppliers, and it is almost impossible to replicate the long-term infrastructure established by TSMC or other semiconductor companies in other places, even if it costs a lot of money.

The Boston Consulting Group (BCG) previously stated that if the major global semiconductor players establish their own fully self-sufficient local supply chains, it will push up the overall price of semiconductors by 35% to 65%.

Over the past five years, TSMC has been the world's leader in advanced manufacturing and currently owns about 55% of the global contract chip market, far higher than OPEC's 40% oil market share. This makes TSMC one of the most valuable companies in the world.

TSMC's 2021 annual report shows that its main raw material suppliers are international manufacturers, most of which are Japanese companies, mainly involving silicon wafers, process chemical materials, yellow light process materials, special gases, chemical mechanical polishing materials, and Well-known suppliers of top semiconductor process equipment, automation equipment and components such as ASML and Applied Materials.

In addition, TSMC also has essential patent designs that are as deep as the sea. As of May this year, TSMC's global patent applications exceeded 75,000, and more than 52,000 were approved, ranking the third largest patent applicant in the United States for two consecutive years. The quality ranks first among the top 10 patent holders, and this does not include the most critical "trade secret registration system" of TSMC.

The latest report of TrendForce TrendForce shows that in the second quarter of this year, TSMC continued to be the world's largest foundry, with a market share of 53.4%.

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