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TSMC Cuts Down Orders By Up to 50%

winjer

winjer

Gold Member
wccftech.com

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

The Taiwan Semiconductor Manufacturing Company (TSMC) has significantly cut down its orders to suppliers, sending shockwaves says report.
wccftech.com wccftech.com

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.
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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.
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According to TSMC's suppliers, the order flow started to weaken in the previous quarter, and this has continued into the current quarter and into the first quarter of next year as well. TSMC shared during its latest earnings report that it is facing difficulty in procuring chipmaking equipment, especially to keep up with its customer orders, and that this when combined with an industry slowdown is forcing the firm to reduce spending.
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On the topic of 3-nanometer, the picture painted by UDN is not great either. Its sources suggest that the monthly average output for the new technology was slated to sit at 44,000 wafers previously, and this has now dropped by a whopping 34,000 wafers to now sit at 10,000 wafers for a 77% drop. Key reasons behind this drop are reduced orders from both Apple and Intel - with Intel's own technology also facing delays and Apple choosing to launch its M2 personal computers in March. These imply that TSMC will not be making any chips for Apple this year, and since Intel itself is also facing delays, its products which use some of TSMC's chips will also see orders flow in later.
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Demand for chips has fallen, yet these tech companies continue to act as if they are in a booming market.
It's time to get back to a normal market. Enough of rising prices for consoles, CPUs, motherboards and especially GPUs.
They should be reducing waffer prices to pre-2020 values, and increase sales? But greed a tough mistress.
Now TSMC risks having their factories at half production, or maybe even be forced to stop some factories to save cost.

Family Middle Finger GIF by South Park
 
AncientOrigin

AncientOrigin

Member
winjer said:
[/URL]






Demand for chips has fallen, yet these tech companies continue to act as if they are in a booming market.
It's time to get back to a normal market. Enough of rising prices for consoles, CPUs, motherboards and especially GPUs.
They should be reducing waffer prices to pre-2020 values, and increase sales? But greed a tough mistress.
Now TSMC risks having their factories at half production, or maybe even be forced to stop some factories to save cost.

Family Middle Finger GIF by South Park
Click to expand...
Is that the opportunity for Sony to jump in and order a lot of Wafers for PlayStation 5?
 
GHG

GHG

Member
Well it's because they refuse to let prices fall, they figure that anyone who still has money at the moment to buy this stuff has money (and to be fair they are right to a certain extent, historically speaking the premium end of the market is least impacted by recessions).

So an artificial supply shortage is fair game as far as they are concerned.
 
Thirty7ven

Thirty7ven

Banned
GHG said:
Well it's because they refuse to let prices fall, they figure that anyone who still has money at the moment to buy this stuff has money (and to be fair they are right to a certain extent, historically speaking the premium end of the market is least impacted by recessions).

So an artificial supply shortage is fair game as far as they are concerned.
Click to expand...

Using the same handbook as oil companies it seems, OPEC says hello.
 
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SlimySnake

SlimySnake

Flashless at the Golden Globes
Could this help explain why Sony thinks they can meet their 18 million PS5 target by March 2023 even though they have only pushed 5 million so far this year?

No more shortages? (of course until TSMC cutting down production creates an artificial shortage)
 
SlimySnake

SlimySnake

Flashless at the Golden Globes
splattered said:
MS haven't raised their prices *yet* ... And now Sony can bring their prices right back down, yeah?
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MS literally gave an interview two days ago saying they will. They knew about this news before we did. So did Sony. They chose to raise prices anyway and we had several posters here claiming its because the chip manufacturing costs have gone UP. Clearly not the case. If anything, both console makers should be able to renegotiate any bad deals they had signed during the pandemic. They finally have leverage over chip manufacturers.
 
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jm89

jm89

Member
SlimySnake said:
MS literally gave an interview two days ago saying they will. They knew about this news before we did. So did Sony. They chose to raise prices anyway and we had several posters here claiming its because the chip manufacturing costs have gone UP. Clearly not the case. If anything, both console makers should be able to renegotiate any bad deals they had signed during the pandemic. They finally have leverage over chip manufacturers.
Click to expand...
You forgetting the JAT, Jimbo-Added tax.
 
Reallink

Reallink

Member
Back to the ole artificial shortage I see, simply don't manufacture any and you can keep prices on the moon. 4090's sold out before the product pages could update, with even the silly $2000 models selling out within a minute. And every single restock since is gone before inventory trackers can even see them. Certainly lines up with there being a surplus of chips /s.
 
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vivftp

vivftp

Member
That's not what I wanna hear about. I wanna learn more about what else might be built at the plant TSMC is building in Japan in collab with Sony. I know they're likely aiming for 20nm chips so we won't be seeing PS5 APU's made there, but I wanna know if Sony might finally get their Re-Ram production off the ground and utilize this facility to do so.

Re-Ram for PS6!
 
vivftp

vivftp

Member
ergem said:
Looks likes Nintendo can negotiate a slot for 3nm chips for Switch 2, or Sony with PS5 pro.
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Don't forget the PS5 Portable!

Gimme dat triple combo of a PS5 refresh, a PS5 Pro and a PS5 Portable. Then make it a quadruple by putting millions of units in the cloud for PS+ Premium.
 
E

ergem

Member
vivftp said:
Don't forget the PS5 Portable!

Gimme dat triple combo of a PS5 refresh, a PS5 Pro and a PS5 Portable. Then make it a quadruple by putting millions of units in the cloud for PS+ Premium.
Click to expand...

PS5 Portable is a break from tradition. I'd prefer to call it PS5 slim still.

Infrastructure for the cloud will scale according to demand. I don't think the demand is there.
 
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P

prinz_valium

Member
SlimySnake said:
MS literally gave an interview two days ago saying they will. They knew about this news before we did. So did Sony. They chose to raise prices anyway and we had several posters here claiming its because the chip manufacturing costs have gone UP. Clearly not the case. If anything, both console makers should be able to renegotiate any bad deals they had signed during the pandemic. They finally have leverage over chip manufacturers.
Click to expand...
They will eventually. Eventually everything will be more expensive.
That does not equal a price increase right now.
Microsoft explicitly said they won't increase the price right now.
 
vivftp

vivftp

Member
ergem said:
PS5 Portable is a break from tradition. I'd prefer to call it PS5 slim still.

Infrastructure for the cloud will scale according to demand. I don't think the demand is there.
Click to expand...

By PS5 Portable I mean something akin to a Steam Deck. A portable device capable of running PS5 games at 1080p, and the games from all previous gens that're compatible with the PS5.

I know it's a dream, but I still want it damnit 😄
 
TheGecko

TheGecko

Banned
winjer said:
[/URL]






Demand for chips has fallen, yet these tech companies continue to act as if they are in a booming market.
It's time to get back to a normal market. Enough of rising prices for consoles, CPUs, motherboards and especially GPUs.
They should be reducing waffer prices to pre-2020 values, and increase sales? But greed a tough mistress.
Now TSMC risks having their factories at half production, or maybe even be forced to stop some factories to save cost.

Family Middle Finger GIF by South Park
Click to expand...

When demand falls price rise. That's economics.
 
C

crackajack

Member
CeeJay said:
...China having the control and monopoly over the entire worldwide silicon chip industry....
Click to expand...
Neither ASML nor Zeiss (and I guess other parts of the supply chain) are Chinese. While we moved a lot of manufacturing and even some higher tech to China, this area is still pretty western, just not most of the fabs of TSMC. Which could be lost and are hardly replaceable short term in that scenario.
 
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