TSMC Reveals ~36% Revenue Growth As China's ZTE Reportedly Using 7nm For 5G

The Taiwan Semiconductor Manufacturing Company (TSMC) has reported its revenue for the month of January which marks a strong kickoff to the yr that analysts predict might feature a semiconductor inventory correction. Aslope, a fresh report from the Japanese publication Nikkei claims that Chinese telecommunication firm ZTE Corporation, previously sanctioned by the United states government for conducting business with Iran, is quietly designing its products on i of TSMC's most advanced chipmaking processes. The latter bit of news comes after the U.S. sanctioned Chinese consumer electronics and engineering science behemothic Huawei Technologies Co Ltd from using similar technologies due to the company's close ties with the Chinese military.

TSMC Reports NT$ 172 Billion In Acquirement For January, As ZTE Uses TSMC Technology For 5G Base Stations

The revenue information from TSMC shows that for the start month of this year, the company posted its strongest acquirement both in terms of dollar amounts and growth rates. It shows that the Taiwanese fab, which is the world's largest contract chip manufacturer, had earned a whopping NT$172 billion during January, to mark for a potent 35.viii% growth.

TSMC counts some of the world's largest technology firms in its listing of customers. These include the Cupertino, California engineering giant Apple Inc, San Diego chip designers Qualcomm Incorporated and Advanced Micro Devices, Inc and Santa Clara graphics processing unit programmer NVIDIA Corporation. Over the years TSMC's advances in semiconductor manufacturing processes, referred to as 'nodes' in the manufacture accept made information technology the backbone of advances in the marketplace.

The revenue for January 2022 is a large spring over figures that TSMC has posted for the past couple of years. For instance, Jan 2021, which was the first starting month of the financial year for the company post-obit the large calibration disruptions ushered in by the ongoing pandemic saw TSMC bring in NT$126 billion in revenue alongside an annual growth charge per unit of 22.2%.

This growth comes as the visitor continues to reap the benefits of capacity expansion and higher prices, with the latter post-obit chip shortages in the manufacture following the pandemic-induced demand uptick.

The Taiwan Semiconductor Manufacturing Company (TSMC)'s almanac revenue growths for the months of January. Data compiled by Wccftech.

With TSMC's business booming, Nikkei believes that Chinese telecommunication firm ZTE is quietly edifice a technological border in the base station market for 5th-generation (5G) cellular connectivity. These stations are used by telecommunications carriers to run across consumer demands, and the publication believes that ZTE has designed its equipment to be based on the seven-nanometer (nm) process node.

According to The Nikkei:

The company [ZTE] has been utilizing some of TSMC's near avant-garde scrap product technology -- the then-called vii-nm tech -- to build processors for its 5G base of operations stations. Sources said it too uses the Taiwanese chipmaker's advanced bit packaging engineering science, which uses stacking technology to arrange chips with unlike functions into i package.

Information technology also outlines that Huawei'southward disability to comport business with TSMC due to American sanctions has left the field wide open for ZTE. The visitor is targeting double-digit growth for its server and base of operations station segment, and information technology is also interested in TSMC's leading-edge chip node, which is the company'due south 5nm process.

All the same, while ZTE might not be sanctioned to procure the latest chip technologies from TSMC, the company however can not sell its 5G base stations to several Western companies. This has resulted in it focusing its efforts by and large on China, as the U.S. will rely on pocket-sized prison cell 5G Open RAN platform developed by Qualcomm Incorporated on the 4nm node.

TSMC also sells products built on the 4nm, which is a blueprint extension of the company'due south 5nm process families. Unlike process technologies marketed under the 4nm branding are expected to commence production from the second half of this year to the first half of 2023.