TSMC Cuts Down Orders By Up to 50%, Sending Shockwaves Says Report

wccftech ^

[FarCenter]

The Taiwan Semiconductor Manufacturing Company (TSMC) has cut down its orders to suppliers according to reports in the Taiwanese press. TSMC, which is facing an industry slowdown as its customers struggle with demand slowdown, cut down capital expenditures for 2022 earlier this year, and the firm cited a lack of demand forecasting as the primary reason behind the drawdown. Now, the firm is also rumored to have significantly reduced its 3-nanometer output estimates for this year, in the latest bit of speculation surrounding the advanced chip manufacturing technology scheduled to enter production in the current quarter.

Today's report comes courtesy of the United Daily News (UDN) and it speculates that TSMC has started to cut down its supplier orders. These orders form the backend, or upstream, of the semiconductor manufacturing supply chain, and they involve a variety of products such as TSMC procuring silicon wafers and other consumable to keep its machines running.

UDN's sources believe that TSMC has reduced these orders by as much as 50%, with the drop coming after the fab also cut down its spending. Due to the critical nature of the company as Taiwan's largest and leading chipmaker, the order cutdown has also sent shockwaves down the chip sector as a whole.

[Bayard]

Supply and demand?

Demand drops, supply follows.

[DAC21]

This is big news if accurate. TMSC is a HUGE chip supplier including making Qualcomm’s chips that power a huge % of cellphones.

[EEGator]

This is huge.

[Flick Lives]

This is huge.

—

Actually, 3-nanometers is really small.

it’s a fab joke...

I’ll let myself out.

[Ge0ffrey]

We are headed into a deep recession.

[EEGator]

:)

[who knows what evil?]

But...muh abortion...thanks, American women.

[hecticskeptic]

And yet the market roared ahead today...

[Scram1]

“Very small measurement used by toolmakers & engineers, or roughly .0001 or one ten thousandth of an inch. Actual size may vary between shops”
Name that tune.

[McGavin999]

They need to move to the US.

[EEGator]

I thought Micrometer. Something online was a Gnat’s ass.

[Rural_Michigan]

No thanks. Not a good place to be either. Test a few homegrown nukes to ward of China and stay right where they’re at.

[CapnJack]

Does TSMC supply much of the chips used in the auto industry? If so, then can we assume that the auto industry has all the chips they need to finish off all the 2021/2022 cars/trucks sitting around waiting for them?

Again ... If so, then should we expect a big price drop for new cars/trucks next year and increased supply at the dealerships?

[minnesota_bound]

On thursday AMD stock was UP to $68.47 +8.55 (+14.27%)
Other tech stocks also had high % day.

[central_va]

and series.

[House Atreides]

“ They need to move to the US.”
*******************************

They are. They’re building several chip making factories in Arizona. They are a major supplier of chips to Apple.

[SunkenCiv]

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[SunkenCiv]

In short, TSMC's the best in the world, making chips for Apple and AMD, among others. TSMC's next process will shrink chip size by about two times (2.5, if everything else were equal, which it probably ain't), and they're shifting production to that. It means that demand isn't shrinking, but supply is, which means pricing and margins will be better. The rest of the TSMC keyword, sorted:

• World's Top Chipmaker TSMC plans Arizona factory expansion [11/09/2022]
• US godfather makes a chip offer you can't understand [11/05/2022]
• A serving of chips: How Intel plans to take on TSMC and Samsung [11/03/2022]
• Samsung, TSMC in US patent infringement investigation [10/18/2022]
• Taiwan Security Bureau: No Need to Destroy TSMC's Fabs If China Invades [10/13/2022]
• China on course to elude US chip-making equipment bans [10/03/2022]
• Memory Market Collapse to Propel TSMC to Top Spot in 3Q22 IC Ranking [09/12/2022]
• China's Global Times: Nice semiconductor business you got there TSMC it would be a real shame if something happened to it [08/31/2022]
• China needs Taiwan's chipmaker TSMC more than TSMC needs China [08/17/2022]
• Taiwan test case for investing in China chipmaking [07/21/2022]
• STMicroelectronics, GlobalFoundries to Build 300-mm Fab in Crolles [07/14/2022]
• World's largest chipmaker TSMC posts record profit allaying fears over semiconductor headwinds [07/14/2022]
• The Semiconductor Problem [07/14/2022]
• How China could leapfrog US chip-making bans [07/14/2022]
• Onshoring Semiconductor (Chips) Capacity Is Crucial To National Security [06/06/2022]
• 'Everything is gone': Russian business hit hard by tech sanctions [06/05/2022]
• TSMC And Intel Are In A Mad Dash To Hire Semiconductor Technicians For Their New Plants In Arizona [05/28/2022]
• TSMC says demand for smartphones, PCs starting to slow [03/30/2022]
• Creating sub-1-nm gate lengths for MoS2 transistors [03/14/2022]
• A Single Company in Taiwan Makes 92% of the World’s Most Sophisticated Chips: Taiwan Semiconductor's dominance is a single point of failures for phones, cars, and nearly all sophisticated chips in the global economy. [02/24/2022]
• Taiwan should adopt a "broken nest" policy and destroy TSMC in wake of any Chinese invasion, suggests US military paper-(Destroy Semi Cond. Factories) [01/06/2022]
• Samsung Reportedly Picks This Tiny Town In Texas For A Massive $17 Billion Chip-Making Factory [11/23/2021]
• Apple sales miss expectations, Tim Cook says supply issues cost company $6 billion [10/29/2021]
• Inside TSMC, the Taiwanese chipmaking giant that's building a new plant in Phoenix [10/16/2021]
• Intel breaks ground on $20 bln Arizona plants as U.S. chip factory race heats up [09/28/2021]
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• Microsoft Is Rethinking Windows 11 Minimum Requirement For These Popular AMD And Intel CPUs [06/30/2021]
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• 1,600 Layoffs Coming at Northern Illinois Jeep Cherokee Factory [05/19/2021]
• Silicon Chip Shortage Leads To Potato Chip Shortage: Farm Equipment Manufacturers Have Halted Shipments [05/18/2021]
• TSMC SET TO "DOUBLE DOWN" AND VASTLY INCREASE U.S. SEMICONDUCTOR PRODUCTION INVESTMENT IN ARIZONA [05/14/2021]
• TSMC, high-tech firms unscathed by massive outage in Taiwan [05/13/2021]
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• Taiwan Semiconductor Manufacturing Co. to Build Advanced Chip Factory in Arizona... [05/14/2020]
• Unlikely TSMC (Computer Chip Giant)will soon build in US [05/11/2020]
• Intel says Qualcomm tactics forced it out of modem chip market [11/29/2019]
• TSMC Will Decide To Build U.S. Fab Next Year, According To Spokesman; Plant Estimated At $16 Billion [03/22/2017]
• Microsoft's HoloLens secret sauce: A 28nm customized 24-core DSP engine built by TSMC [08/23/2016]
• SiFive Unveils Freedom Platforms for RISC-V-Based Semi-Custom Chips [07/24/2016]
• (Apple's) A9 chipmaker records highest earnings in its 29-year history [01/15/2016]
• TSMC wins Spy Case against a Former Employee who gave Secrets to Samsung [08/26/2015]
• First TSMC 16nm FinFET product announced ( 32 core ARMv8 networking processor ) [09/26/2014]
• ARM chips running at 3GHz on the cards for next year [07/13/2013]
• TSMC and Nvidia ship one-billionth GPU [01/13/2011]
• We've Been Bamboozled! Process Delays Hit GPUs ( Why is it so hard?) [12/10/2010]

[SunkenCiv]

I thought your fab joke was fab.