{"id":130794,"date":"2021-11-18T07:23:10","date_gmt":"2021-11-18T15:23:10","guid":{"rendered":"https:\/\/lifeboat.com\/blog\/2021\/11\/tsmc-gets-billions-in-pre-payments-for-fab-capacity"},"modified":"2021-11-18T07:23:10","modified_gmt":"2021-11-18T15:23:10","slug":"tsmc-gets-billions-in-pre-payments-for-fab-capacity","status":"publish","type":"post","link":"https:\/\/lifeboat.com\/blog\/2021\/11\/tsmc-gets-billions-in-pre-payments-for-fab-capacity","title":{"rendered":"TSMC Gets Billions in Pre-Payments for Fab Capacity"},"content":{"rendered":"<p><a class=\"aligncenter blog-photo\" href=\"https:\/\/lifeboat.com\/blog.images\/tsmc-gets-billions-in-pre-payments-for-fab-capacity2.jpg\"><\/a><\/p>\n<p>Long-term supply agreements are nothing new in the semiconductor industry. Both fabless chip designers and contract makers of chips prefer stable supply and demand, respectively. But in a world with severely constrained supply, chip developers are willing to pay for their integrated circuits well in advance, which is a boon for foundries.<\/p>\n<p>Taiwan Semiconductor Manufacturing Co. (TSMC), the world\u2019s largest foundry, <a href=\"https:\/\/investor.tsmc.com\/sites\/ir\/financial-report\/2021\/TSMC%202021Q3%20Consolidated%20Financial%20Statements_E.pdf\">disclosed in a filing<\/a> that it received temporary receipts of around $3.825 billion (NT$106,33 billion) from customers as of September 30, 2021. Temporary receipts from TSMC\u2019s customers are payments received to retain its capacity. To put the number into context, TSMC earned some $14.926 billion (NT$414.67 billion) in <a href=\"https:\/\/investor.tsmc.com\/english\/encrypt\/files\/encrypt_file\/reports\/2021-10\/e57890916beab9b3109a514c405400c34d1d5bc0\/3Q21EarningsRelease.pdf\">Q3 2021<\/a>, so $3.825 billion is a sizeable sum for the company.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Long-term supply agreements are nothing new in the semiconductor industry. Both fabless chip designers and contract makers of chips prefer stable supply and demand, respectively. But in a world with severely constrained supply, chip developers are willing to pay for their integrated circuits well in advance, which is a boon for foundries. Taiwan Semiconductor Manufacturing [\u2026]<\/p>\n","protected":false},"author":396,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1523],"tags":[],"class_list":["post-130794","post","type-post","status-publish","format-standard","hentry","category-computing"],"_links":{"self":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/130794","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/users\/396"}],"replies":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/comments?post=130794"}],"version-history":[{"count":0,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/130794\/revisions"}],"wp:attachment":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/media?parent=130794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/categories?post=130794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/tags?post=130794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}