tsmc

We’re hearing not necessarily conflicting reports, but reports which are not aligned completely. When talking about iPhones and their by now renowned weaker-than-expected performance, the supply chain was talking about Apple cutting orders with suppliers. One such supplier is TSMC, and the last time we heard about the chip-maker we were told it would be not affected as far as its 7nm process production is concerned. That’s because the space freed up by Apple’s lowered orders is easily filled in by other clients like Huawei (and its Kirin 980 chip), Qualcomm and its latest Snapdragon, as well as AMD.

Today’s report comes from China’s Commercial Times, and claims TSMC’s 7nm process production is unlikely to be fully utilized in the first half of the year. While confirming order cuts from Apple, this report also mentions a cutback in orders placed by HiSilicon (Huawei, Kirin) and Qualcomm.

These three companies, as well as other clients utilizing its 7nm process production, will likely only take up 80 to 90 percent of TSMC’s production capacity. While not mentioning specific reasons, the report claims that Huawei and Qualcomm are “cautious about placing orders”, just like Apple. The reasons could be different though, but no company is reducing supplier orders when its products are selling well. TSMC didn’t comment on the report, which you can find at the source link below.

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