TSMC Trims Expansion Plans as Outlook Dims

By Alan Patterson, EETimes (Jumy 15, 2022)

Taiwan Semiconductor Manufacturing Company (TSMC) has pared back its plan to spend more than $40 billion this year for capacity expansion. The outlook for demand has worsened on expectations of an inventory reduction in the PC and consumer electronics segments.

At a quarterly result meeting on July 14, TSMC predicts its capital expenditure this year will reach about $40 billion. Three months ago, the company forecasted that number could have reached $44 billion.

“Due to the softening device momentum in smartphone, PC, and consumer end–market segments, we observe the supply chain is already taking action and expect inventory levels to reduce throughout the second half of 2022,” said TSMC CEO C.C. Wei at the event. “We believe the current semiconductor cycle will be more similar to a typical cycle, with a few quarters of inventory adjustment likely through first half 2023.”

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