Dozens of giants from Apple, Qualcomm pay huge upfront payments

$Taiwan Semiconductor(TSM.US)$ The global shortage of cores throughout 2021, under the concerted efforts of the industry's leading manufacturers to increase production, still spread to 2022, and the momentum has not diminished at all.

According to Taiwan Economic Daily, as TSMC’s production capacity continues to be in demand, dozens of giants such as $Apple(AAPL.US)$ and $Qualcomm(QCOM.US)$ have paid huge advance payments in order to ensure supply, which may reach a new high of NT$150 billion (about 34.65 billion yuan).

This is not the first time TSMC has received an advance payment of 100 billion yuan. As of the third quarter of last year, the total advance payment amounted to NT$106.3 billion (about 24.55 billion yuan). Throughout the two years when the shortage of cores has spread, TSMC's prepayments have grown steadily.

The industry's explanation for this is that the shortage of upstream capacity has led to fierce competition in the downstream, and terminal manufacturers have to book in advance to "start first and become stronger".

Therefore, leading foundries such as TSMC enjoy the benefits, and the steady increase in prepayment may lead to a new record in revenue, and promote "no off-season throughout the year".