TSMC says demand for smartphones, TVs and PCs is slowly but steadily declining. They are concerned about low demand, especially in China.
The world’s largest contract design and manufacturing company is seeing signs of slowing consumer demand for certain electronics, as geopolitical uncertainties and pandemic lockdowns persist in China. However, it’s not a real concern for Taiwan Semiconductor Manufacturing Company, as the outfit is already dealing with more orders than it can fill.
TSMC Chairman Mark Liu said that demand for smartphones, computers and televisions is declining, especially in China. Part of the problem is the fact that component and material costs are rising due to supply chain issues., which raises production costs in the process. “This pressure could end up affecting consumersLiu pointed out.
However, not everything is pessimism, since Liu said TSMC continues to see strong demand for high-performance computing components, Internet Idc (Digital Interconnect) devices and components for the automotive industry..
The manager added that they are still unable to meet customer demand with current capacity, which will force the company to reorganize and prioritize orders for areas that are still experiencing high demand.
In January, TSMC said it expects to grow up to 20% (in dollars) this year and will spend more than $44 billion to increase capacity by 2022..
TSMC’s observations match what we’ve heard from others. A Nikkei Asia report from earlier this week claimed that Apple has asked suppliers to cut production of the new iPhone SE by as much as 20% due to lower-than-expected demand. It seems that this trend will begin to be more common soon.
Source: Techspot
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