TSMC says consumer demand for smartphones, PCs, and TVs is slowing

Earlier, Nikkei Asia mentioned in the latest report, that Apple plans to reduce the production of the 2022 iPhone SE by 20% in the next quarter, and it is expected to reduce production by 2-3 million units. Also, well-known Apple product analyst Ming-chi Kuo also released his latest forecast for this, downgrading the total sales of the iPhone SE to 15-20 million units this year.

This situation also seems to be confirmed by TSMC, which recently announced that consumer demand for smartphones, PCs, and TVs is weakening, especially in China.
TSMC 2nm chip

Part of the problem is that component and material costs are rising due to supply chain issues, driving up the overall manufacturing cost of consumer electronics, and ultimately these increased costs are passed on to consumers.

Of course, even though there may be a slowdown in consumer demand now, the problem of product and supply constraints for the chip industry has not eased significantly.

TSMC’s orders are still full, and TSMC said that the demand for chips in enterprise high-performance computing chips, Internet of Things equipment, and the automotive industry is still very large, and this has exceeded TSMC’s production capacity limit.

TSMC plans to spend $44 billion in capital expenditures throughout 2022 to increase production capacity, and TSMC’s revenue growth rate is also likely to reach a staggering 20%.