TSMC Warns Slowing Demand for Smartphones and PCs

Technology Author: Tommy Mi Mar 30, 2022 02:24 PM (GMT+8)

TSMC has struggled to meet supply demands amid global semiconductor shortage. Slowing demand in electronics further increases TSMC's uncertainties in meeting their annual goals.


On Wednesday, the Chairman of TSMC said that the consumer demand for electronics is showing signs of slowing, attributed to pandemic-related lockdowns and geopolitical volatility. According to Chairman Mark Liu, slowing demand shows in areas "such as smartphones, PCs, and TVs, especially in China, the largest consumer market."

TSMC expressed concerns about the impact of China's measure to contain the pandemic on the economy. According to Yahoo, China's lockdowns are roughly costing the country USD 46 billion a month in lost economic lockdowns. Per economics expert Song Zheng, a professor at The Chinese University of Hong Kong, complete lockdowns for two weeks in the 16 cities studied will lead to a loss of 2.7% in their annual GDP. If a major city like Beijing or Shanghai goes into lockdown for the same period, China would see a loss of approximately 2% in its monthly GDP, which is around USD 30 billion.  

TSMC predicted in January that sales would grow more than 20% for the year. Sales forecast for the chip maker's first-quarter was from USD 16.6 billion to USD 17.2 billion. Despite the ramifications of lockdowns and loss in recovery progress, TSMC is not likely to change its growth target. "Despite the slowdown in some areas, we still see robust demand in automotive applications and high-performance computing and internet of things-related devices. We still cannot meet our customers' demand with our current capacity. We will reorganize and prioritize orders for those areas that still see healthy demand," said Mark Liu.