TSMC’s major customers cut orders one after another

The semiconductor industry has been hit by a recent downturn in the consumer market, with declining sales of graphics cards, smartphones, and storage devices, as well as high inventory levels. TSMC was also inevitably affected, with constant reports of customers delaying or cutting orders. As a leading company at the top of the semiconductor supply chain, TSMC is likely to fall too.

According to relevant media reports, TSMC’s 3nm orders were temporarily canceled by customers, resulting in a lower production capacity of the N3 process recently mass-produced than the original plan. It is estimated that there will be a significant increase in the second-generation N3E process in the second half of next year. This directly affects TSMC’s order volume on its supply chain. It is rumored that orders have been cut by 40% to 50%, covering wafers, key consumables, equipment, and other aspects, affecting all aspects of the entire semiconductor supply chain.