Thursday, December 29th 2022
Top 10 TSMC Customers Said to have Cut Orders for 2023
On the day of TSMC's celebration of the mass production start of its 3 nm node, news out of Taiwan suggests that all of its top 10 customers have cut their orders for 2023. However, the cuts are unlikely to affect its new node, but rather its existing nodes, with the 7 and 6 nm nodes said to be hit the hardest, by as much as a 50 percent utilisation reduction in the first quarter of 2023. The 28 nm and 5 and 4 nm nodes are also said to be affected, although it's unclear by how much at this point in time.
Revenue is expected to fall by at least 15 percent in the first quarter of 2023 for TSMC, based on numbers from DigiTimes. The fact that TSMC has increased its 2023 pricing by six percent should at least help offset some of the potential losses for the company, but it all depends on the demand for the rest of the year. Demand for mobile devices is down globally, which is part of the reason why so many of TSMC's customers have cut back their orders, as Apple, Qualcomm and Mediatek all produce their mobile SoCs at TSMC. Add to this that the demand for computers and new computer components are also down, largely due to the current pricing and TSMC is in for a tough time next year.
Sources:
DigiTimes (in Mandarin), via @dnystedt
Revenue is expected to fall by at least 15 percent in the first quarter of 2023 for TSMC, based on numbers from DigiTimes. The fact that TSMC has increased its 2023 pricing by six percent should at least help offset some of the potential losses for the company, but it all depends on the demand for the rest of the year. Demand for mobile devices is down globally, which is part of the reason why so many of TSMC's customers have cut back their orders, as Apple, Qualcomm and Mediatek all produce their mobile SoCs at TSMC. Add to this that the demand for computers and new computer components are also down, largely due to the current pricing and TSMC is in for a tough time next year.
25 Comments on Top 10 TSMC Customers Said to have Cut Orders for 2023
The world economy has changed in to a lower gear with less demand. Inflation, insecurities for peoples future economy and jobs, wars, interests rate and so on. Has slowed the world economy and 2023 will i think be in the recessions light. If not a global recession, so at least a recession in Europe where I live with the energy crisis and skyrocketing inflation. A recession is hard to avoid, it more like how bad is the recession and how long will it take. In the US I am not sure, but I would expect some sort of downward spiral for the economy as long the world central banks keeping the rates high lending money.
2023 is going to be a year of hardship for at least some people do to economic strain and insecurities.
But let's try to see positive things as well. With less demand for hardware. There are less chances of hardware going in the hard to get and by that very expensive.
Less demand and better available in stores. Has the side effects of sometimes lowering the price of hardware as well. So those who are still looking for hardware in 2023 and has some cash to burn. Might be in for a cheaper build or upgrade than it has been for the last 2-3 years.
Ultra high priced tech is not selling well. It's only a matter of time before we get profit warnings and guidance downgrades across the industry.
Everyone still producing hardware for Lockdown and mining markets... Gone...
With electricity prices up significantly, there is a huge market for new node silicon, but in a different market segment. This is not for the fab to decide, but for OEMs to see market growth in upgrading PCs to significantly lower power usage, and new PCs and GPUs in a far lower energy envelope. The problem is, mid end CPU and GPU dont make for sexy advertising. The Product Managers , PR and marketing need to think strategically about the shift in purchasing priorities to low power consumption.
There are 4-5-W APUs which can serve all office PCs.
Cutbacks by other customers mean more capacity for AMD. AMD may be able to continue to leverage its low price strategy to expand its consumer GPU market.
But most of TSMC's shrinking orders came from 7nm and 6nm. Now AMD's new products are mainly 5nm, maybe AMD won't improve much either?
It can be e-series, TDP - 6 W, 4.5 W, 3.95 W:
Processor Specifications | AMD
Yep China still in lock down mode :kookoo:
www.theguardian.com/world/2022/dec/30/china-covid-experts-estimate-9000-deaths-a-day-as-us-says-it-may-sample-wastewater-from-planes
Worse, this also impacts transport from docks. We had multi monthlong clusterfucks in the US because all the dockworkers got sick because we were too stupid to lockdown and force people to vaccinate as soon as possible. Ditto with trucking and rail. So now you have ships with no food creating virus mass infections so their crew are down and nobody to unload or move the stuff if it could arrive. The catch is the only way to move goods is shipping or train. Other methods are stupid expensive, not practical, and prone to failure. So a bulk decision was made by a lot of countries to quit screwing about with foreign supply chains and also trucking and invest heavily in local manufacturing, rail, and shipping. All so that the next time this happens they aren't stuck with it.
An immediate, full, total lockdown, with mandatory vaccines, global distribution of them (a lot of people who work in shipping are from Africa, Asia, or Latin America and nobody was going to give them free vaccines in any bulk support) would have hurt hard off the bat but avoid the long term things. But instead we got stamping of footsies "I want to go to church and the bar" nonsense along with "no money for poor countries" and now here we all are!
Europe is run by a bunch of corrupt idiots. I cannot explain in any other way the closing of some energy facilities (even the nuclear ones!!!!) and becoming dependent on a country led by a criminal despot.
A cold shower was needed anyway because the prices went crazy in all segments.
Which will kill Germany's industry which is not competitive on costs background.
Juicy.