Problems for AMD: TSMC would cut wafer allocation. We have all heard about the lack of stock worldwide of all the products that were launched in this last part of the year, and although this affects all companies, AMD is probably the most affected, due to the great number of products that is in production. To make matters worse, a decision by TSMC regarding wafers could create a new headache for the company.
Problems for AMD: TSMC would cut wafer allocation
Financial analyst Dan Nysted revealed that Taiwanese media are suggesting that TSMC will change course to increase its operating margins. And to achieve this, TMSC would cut back wafer allocation to give the opportunity to new companies, and thus increase the prices of its wafers.
According to an undisclosed source in Taiwan, TSMC would already be “canceling a sales allocation (price reduction) for major customers of 12-inch wafers”. Another analyst, Patrick Moorhead, indicated that the solution to this problem would be for TSMC to continually expand production, but that is not happening.
Why is TMSC reducing wafer allocation?
The main one noted here is Samsung Foundry, as it is reported to be “growing faster year over year against TSMC for the first time in years”. This is because the company secured some strong customers such as Qualcomm and NVIDIA, and in addition to having a “good 5nm node”, Samsung’s 3nm GAA (Gate-All-Around) is expected to be highly competitive.
This could even be a paradigm shift because if everything goes as the Japanese company plans, some of TSMC’s main customers could switch to Samsung’s side.
