Thread by @dnystedt

TSMC on Japan fab: plans to build a specialty technology fab in Japan, subject to board approval. Japanese government supports the plan. Will build a 22-28nm process technology #semiconductor fab. Fab construction to begin in 2022, and mass production expected in 2024. $TSM

2/? TSMC 3Q Call
TSMC CEO CC Wei: We are confident we will retain our technology leadership. 2nm technology, density and performance will be the most competitive in 2025 and GAA structure is being considered, but won't say more today. (paraphrasing). $TSM

3/? TSMC 3Q Call

CEO CC Wei: "We are entering a period of higher structural growth" due to 5G, HPC and massive new demand for energy efficient computing, which will require leading edge technologies.

"We expect our capacity to remain tight in 2021 and throughout 2022."
$TSM

4/? TSMC 3Q Call
Many questions about potential #semiconductor down cycle next year.
TSMC answer: We cannot foresee industry downturns, but there won't be a downturn for TSMC. TSMC fabs will be full through the end of 2022.
$TSM

5/? TSMC 3Q Call

TSMC asked if it will update its US$100 billion 3-year capital spending plan. Says no update now.
Also says the planned Japan fab is not included in that figure.
Capex this year US$30 billion (no change).
$TSM

6/? TSMC 3Q Call

TSMC: More customers are making pre-payments to secure capacity, (and share the huge capital spending burden).
$TSM

Addendum: TSMC said fab capacity will be "Very Tight" through the end of 2022 and not what I wrote, not full.
$TSM

7/? TSMC 3Q Call

TSMC expects customers to hold more inventory than before, and for a longer period of time. (Potentially a structural change.) Imbalances in the supply chain caused by #COVID19 continue.
$TSM

8/? TSMC 3Q Call
Automotive supply chain:
1. More complex than TSMC initially thought.
2. TSMC is working hard to solve supply problems.
3. "We cannot solve the entire industry's supply chain."
4. Pandemic in Southeast Asia affected the supply chain.
$TSM

9/? TSMC 3Q Call
Price Increases:
Asked about 10-20% price increase reported in media.
Answer:
CC Wei "Our pricing strategy will remain strategic, not opportunistic."
TSMC will seek to maintain a 50% or higher gross margin.
$TSM

10/10 TSMC 3Q Call
End Markets
Many questions on waning smartphone, other demand.
TSMC: End market appears a bit slow, but we think it's because of the component shortage.
$TSM

TSMC's 3rd Quarter webcast (replay) and all related materials can be found here (a full conference call transcript will be provided later).
investor.tsmc.com/english/quarte…