TSMC has received $ 4 billion from customers to reserve production capacity in the future.

Big picture: TSMC, the world’s largest foundry, said in its latest financial statement that it has accepted an unprecedented amount of advance payments for its future manufacturing facilities this year. Let’s hope that this money will help speed up the construction of new equipment for the production of processors. With public computer manufacturers still unable to put hardware into the hands of consumers, all the attention has been turned to foundries looking for lasting solutions to chip shortages.

In the past, TSMC allowed customers to reserve capacity primarily through “security deposits,” a one-time payment of which was returned when the customer placed their order.

TSMC continues to accept security deposits; In fact, about two-thirds of the NT $ 642 ($ 23) security deposits he owns have been paid off in the past nine months. But this year, the company has shifted its focus to “temporary receipts” for future capacity, which are essentially upfront payments.

TSMC signed temporary earnings deals of NT $ 106 (US $ 3.8) this year.

Credit: Fritzchens Fritz

This money does not belong to TSMC until the “conditions set forth in agreements” with its customers are fulfilled and, therefore, there are rules for their use. But the idea is that TSMC will use it to create additional manufacturing facilities that buyers can buy.

TSMC report does not disclose details of agreements and does not talk about clients. Presumably the largest of these is probably Apple, which uses TSMC for all of its iPhone and Mac SoCs. AMD might be around. Last month, dram said that this year it has prepaid various foundries US $ 355 million. Qualcomm is probably there too.

At the moment, neither Intel nor Nvidia rely heavily on TSMC, but both are reportedly discussing the production of their next-gen GPUs with the foundry. At some point in the future, TSMC may become the sole supplier of GPU chips.

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