The semiconductor business is a major global industry, and it is impossible to localize the whole supply chain in one country. The company sources production equipment from the Netherlands and the U.S.; buys raw materials from Europe and Japan and then uses local companies to build fabs.
ArF immersion lasers used to make sophisticated chips that require deep ultraviolet (DUV) lithography use a mixture of neon, fluorine, and argon gases. Neon accounts for over 95% of the blend; meanwhile, modern production tools feature neon recycle systems that reduce actual consumption by over 90%. But while each ArF rs in use worldwide and all of them need neon, fluorine and argon gases, so demand for these noble gases is strong.
While demand for chips is slowing right now, TSMC’s revenue continue to increase. The company posted October revenue of NT$210.3 billion ($6.673 billion), which is up a whopping 56.3% from NT$134.5 billion ($4.267 billion) in October ’21, reports Bloomberg. TSMC will likely be among the last chip companies to report revenue drop due to demand slump, but will be the first chipmaker to benefit from demand rebound in 2023 ~ 2024. So it makes a great sense for the foundry to invest in its supply chain
TSMC to Build Neon Supply Chain After Russia Decimated Global Supply