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  TSMC shortens collection days
 

2022-06-14 11:41:21

 

A number of IC design factories confirmed on the 13th that they received a notice from TSMC to shorten the payment days from next year. However, the payment conditions vary according to the size of each order. Some manufacturers will significantly shorten the payment days from 30 days to 15 days; some manufacturers From the monthly settlement method, the average collection days will be changed from about 45 days to 30 days.

IC designers said that TSMC has invested heavily to expand production in recent years, and capital expenditures this year and next year will exceed 40 billion US dollars. The shortening of the days of collection should be to ease the pressure on cash flow.
 
The legal person believes that TSMC really needs a lot of money for capital expenditure, and the interest costs caused by borrowing are a lot. Shortening the number of days for collection can earn more interest and help improve the performance of the financial department.
 
The legal person said that TSMC has informed customers that it will increase the OEM price next year. The current industry climate is full of variables. Factors such as inflation, interest rate hikes, and China’s lockdown may affect the demand for consumer products such as computers and mobile phones. Many IC design factories have been unable to keep up. As prices rise, gross profit margins are under pressure to compress.
 
TSMC further shortened the number of days for collection. The legal person pointed out that IC design factories with larger scale and sound finances should not be affected, and the cash turnover capacity of small IC design factories will be tested.