Tech

TSMC: Demand for PCs and smartphones is declining






Demand for consumer electronics such as smartphones and PCs is expected to slowly decline worldwide.

Geopolitical uncertainties are currently causing demand for smartphones and computers to decline worldwide. The world’s largest contract manufacturer TSMC, which produces chips for AMD, Apple and Nvidia, announced at the Taiwan Semiconductor Industry Association that they had been following this trend for a while. Customer interest in smartphones would decline significantly, especially in China. One reason for this is the lockdowns in the country. At the same time, TSMC expects rising costs for components and materials in the future. Production costs would also increase for chip manufacturers. According to TSMC, the increases would sooner or later be passed on to customers. This circumstance could cause demand to fall even further.

Prioritization of manufacturing

In addition to the problems in the supply chains, which in turn would lead to rising costs, there would now be macroeconomic uncertainties. Although the growth targets at TSMC would not be shaken, the demand could not be completely satisfied at the moment. Nevertheless, they want to reorganize and prioritize orders, especially in areas where there is still high demand.

iPhone production is to be reduced

According to rumors, Apple wants to significantly reduce the planned production of the iPhone SE 3. Due to lower demand for the budget iPhone, the manufacturer wants to have two to three million fewer devices manufactured. However, the capacities at TSMC that have become free as a result should be filled up quickly. After all, there is still demand in other areas such as game consoles, graphics cards or processors that clearly exceeds supply.

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