Demand For Smartphones Set To Fall According To TSMC
Chairman of Taiwan Semiconductor Manufacturing Co. (TSMC) Mark Liu has revealed that demand for consumer electronics such as smartphones and televisions is slowing due to COVID lockdowns in China and current geopolitical issues.
TSMC are the biggest contract chipmaker in the world and are thus in a good place to judge the global demand of technology.
In addition, production costs are set to rise rapidly due to an increase in expense for materials and components. These costs are likely to ” eventually be passed on to consumers,” says Liu.
The semiconductor industry has already seen a skyrocket in costs over the pandemic after lockdowns and restrictions put gargantuan pressure on their supply chain.
That being said, Liu says that TSMC is unlikely to change its target for growth and capital expenditure.
“Despite the slowdown in some areas, we still see robust demand in automotive applications and high-performance computing as well as internet of things-related devices,” he said.
“We still cannot meet our customers’ demand with our current capacity. We will reorganize and prioritize orders for those areas that still see healthy demand.”
Despite fighting a never ending battle against the chip shortage that began in late 2020, TSMC has stated that they aim to grow their revenue for the year by 25%, and spend $44 billion USD in capital expenditure.