“ Excessive chip inventory ” are three Holy Scripture I was n’t expect to pen anytime presently , and yet the world ’s largest contract chip supplier is predict that seemingly unconvincing scenario . TSMC say in an wage call on Thursday that while its nett income attain disk levels ( up 76.4 % year - on - year ) , softening demand in PC , smartphones , and other consumer segments has led to an “ excess inventory in the semiconductor supply chain . ” The chipmaker prognosticate it will take “ a few quarters ” before things rebalance .
On the smartphone and PC front , declining need follows two eld of lockdowns and remote work , a period when consumer were eager to upgrade or buy new gadgets that they would bank upon . Now that household offices are amply equipped , demand has go away . Another perpetrator of the chip supplying shortage , crypto mining , has imploded in recent month as crypto values continue their bottomless freefall . At the same meter , geopolitical tension and soaring inflation are cause further dubiousness . TSMC is n’t the only ship’s company ringing the alarm Melville Bell : last calendar month , Micron warned of decreasing need for consumer merchandise .
“ Our suppliers have been facing greater challenges in supply chains , which are extending tool delivery times for both our ripe and mature node , ” TSMC CEO C.C. Wei said .
MacBook AirPhoto: Michelle Ehrhardt/Gizmodo
To be clear , the chip shot shortage is far from over . While stock list for the high - goal chips found in modern consumer gadgets is increasing , need in other grocery segments , including data snapper and automotive , has remained stiff . provision for those area is tight , and TSMC must reapportion resource to account for such steady demand . Doing so may not be enough , as the chipmaker says consumer needs will remain to surpass “ our power to supply . ”
TSMC says demand for leading 5 - nanometer and 7 nm microchip applied science will help bear out its businesses decease into the death of this year . Apple ’s next iPhone could play a major part : TSMC is the sole crisp supplier for the Cupertino hulk and is responsible for the fictionalisation of its customs duty Si , including the unexampled M2 processor in theMacBook ProandMacBook Air . TSMC also supplies fabless semiconductor unit Qualcomm , Nvidia , AMD , and MediaTek , among others .
“ Now lease me speak about TSMC ’s long - term growth outlook . While macroeconomic headwind convey near - term uncertainties that may persist , we believe the fundamental structural ontogeny trajectory in the tenacious - full term semiconductor demand stay hard in place , ” Wei said .
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