TSMC tells vendors to delay chip equipment deliveries, sources say

[StraightEdge]

• TSMC increasingly nervous about customer demand -sources
• Instruction to delay is aimed at controlling costs -sources
• Suppliers currently expect delay to be short-term -sources

TOKYO/SINGAPORE/AMSTERDAM, Sept 15 (Reuters) - Taiwan's TSMC (2330.TW) has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said.

Shares in TSMC suppliers including Dutch-based ASML (ASML.AS) declined following the Reuters report.

The instruction by TSMC, which is grappling with delays at its $40 billion chip factory in Arizona, is aimed at controlling costs and reflects the company's growing caution about the outlook for demand, the sources said.

TSMC tells vendors to delay chip equipment deliveries, sources say

Taiwan's TSMC has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said.

www.reuters.com

 

[StraightEdge]

TSMC lowered its financial guidance for the year, forecasting a decline of 10% year over year in revenue.

Report Says TSMC Concerned About Chip Demand

The company has told large chip-equipment suppliers to delay some deliveries, according to a new report.

www.barrons.com

 

[Mujahid Memon]

HUAWEI effect

 

[huanghong]

This is normal. As import demand in China, the largest chip market, declines, chips have become oversupplied. For example, although China's semiconductor market sales from January to July 2023 were higher than the same period in 2021, China imported US$9.7 billion in chips from the United States from January to July 2021, and China imported only $4.5 billion in chips from the United States from January to July 2023.

 

[TriptiD]

There is overcapacity for chips used in regular laptops and smartphones, but demand is very strong for chips used for AI generative models. So, the small set of companies( Nvidia for processors, Micron, SK Hynix for memory chips) that make chips for these applications are seeing strong sales for these chips.

 

[OIO]

Game over!

 

[pikkuboss]

TSMC will be reduced to niche player in future. The higher nodes will be taken over by other countries even if requires 50% subsidy per chip.