Apple supplier TSMC has said that the demand for consumer electronic products like PCs and smartphones is seeing a slow down. Apparently, the demand has fallen owing to a number of factors.
According to a NikkeiAsia report, the news arrives from TSMC’s Chairman Mark Liu. The senior official of Taiwan Semiconductor Manufacturing Company said that the ongoing geopolitical uncertainities and new lockdowns caused by the coronavirus in China has caused demand to fall. The executive of the world’s largest contract chipmaker and major Apple supplier made the statement at the Taiwan Semiconductor Industry Association. He further added that customer interest has fallen in particular in China.
On the other hand, the rising prices of raw materials and components have also caused production costs to go up for chipmakers like TSMC. Liu believes that “pressure could eventually be passed on to consumers,” which would likely impact the demand of customers since prices of the end products will also rise. He said that “Everyone in the industry is worried about rising costs across the overall supply chain… The semiconductor industry already and directly experienced that cost increase.”
Furtehrmore, Liu stated that TSMC will not be changing its growth targets despite not being able to meet customer demand with its current capacity. However, it plans on reorganizing and prioritizing orders for “areas that still see healthy demand.” A noticeable sign of customer demand falling is Apple’s newly launched iPhone SE 2022, which will have its production lowered due to lower than expected demand in the global market.
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