Why Do TSM's Sales Grow So Fast in China?

This article is a script from the Q&A session of TSM's earnings call on January 14. In order to facilitate reading, we have made appropriate cuts. If you want to know more details, you can click the link provided by Moo_Live below to re-watch the earnings call.

A: We  actually expect the mobile phone and HPC these two segments probably grow above 20% this year and with another two segments -- two platforms, automotive and IoT probably in mid-teens. So put all together, we have to increase the capacity. We work with the customer [Indecipherable] demand. So that's a result of we increased our capacity.

A: China is about 20% of our business and has been stable around that number last year this year. So what's changed is I think the last year, we see the China growth particularly strong and other regions, such as US property growth is less. So that is disjunction for this way. But we continue going on I think the -- we expect to maintain this level.

A: You have to look at this smartphone demand for a year, and then look at the 5G penetration per year. Who will be the smartphone supplier you can change, who will be their shares and where the 5G base station being produced. That was changed. So all these things, it really depends on the -- it boils down to really the forward-looking smartphone demand, would that be interrupted. That's the analysis. I think that if any disruption, it will be a shorter term.

A: The cost in Taiwan is lowest among all regions across the world. We have been studying it continuously and that decision is made to the -- for -- to the best interest of our customers. Yes, the geopolitical is evolving. But we still listen to our customers as the priority. At this point, our customer when asked to be manufacturing in higher-cost region, their answer is we cannot be competitive this way. So to increase -- to maintain the competitiveness of our customer, currently, this is a family out we're having. In the future, right now, it's too early to say and still our customer prefer, we have the lowest cost production site and doing business with us.

Do you think TSM’s growing sales will make its stock rise?
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