As reported on July 1, 2022, there has been a cut in orders from three of the major TSMC’s customers: Apple, AMD, and Nvidia. According to Taiwan Electronic Times, TMSC has rarely previously seen three major companies adjust orders. According to rumors, the annual revenue target will be reduced at the mid-July performance briefing. Thus, Apple, AMD, and NVIDIA are not as optimistic as they were at the beginning of the year about the market performance in the second half.
There has been a sharp decline in demand for many consumer electronics, including mobile phones, shockingly, the report noted. But this trend has not affected TSMC’s business, and the foundry quotation has risen against the trend.
At present, the mass production of Apple’s iPhone 14 series has started, but the target of the first batch of 90 million units has been cut by 10%.
Due to the sharp drop in PC demand and the subsidence of the mining boom, AMD and Nvidia have informed TSMC that they must adjust their order planning. Among them, AMD has reduced the fourth quarter of this year to the first in 2023. There were about 20,000 7/6 nanometer orders in the quarter, and Nvidia asked to delay and reduce orders in the first quarter. Due to the rapid decline in terminal demand, prolonged equipment delivery, and insufficient labor, TSMC’s new Kaohsiung plant may delay mass production until the end of 2024 or 2025.
TSMC reported consolidated revenue of NT$185.705 billion (approximately 42.155 billion yuan) in May, up 7.6% month-on-month and 65.3% year-on-year, setting a record for monthly revenue. The consolidated revenue of TSMC in April 2022 was NT$172.561 billion (about 38.999 billion yuan), an increase of 0.3% month-on-month and 55.0% year-on-year, surpassing the peak revenue of NT$172.176 billion (about 38.912 billion yuan) in January this year.
