The Taiwanese chip manufacturer TSMC has lowered its profit expectations for the current quarter. The company is responding to falling rates of growth in the business with Smartphones and the Mining industry.
The world’s largest independent contract manufacturer of semiconductor products TSMC has, on 21. July presented its second quarter report for this year. The company has in comparison to the previous year, an increase in sales of 9.1 percent and estimated net profit of around 2.3 billion US dollars. Quarter-on-quarter, the Numbers look less rosy. So TSMC reported a sales decline of six percent compared to the first quarter of this year. The net profit decreased by 19.5 percent. In the report, this is attributed mainly to a seasonal slowdown in the smartphone business. The weak business in the mobile sector, however, could be due to the high demand for Mining Chips and favorable exchange rates, at least partially, compensated.
The company expects for the current quarter, however, with a decline in the business with products for the Mining industry. In the coming quarter, it is also focusing on products which make use of the new 7-nm Chips, the company use. As it says in the Report:
“In terms of the third quarter of 2018, we expect that our business of the release of products that use our 7-nm Chips, will benefit. The demand in the area of crypto-Mining will be lower than in the last quarter.“
After TSMC had already been reduced in April, the sales forecast for the full year, the company expects a sales growth in the “high single digits” for 2018. Previously, the forecast was still at ten percent.
Apple, AMD & co. want to install 7-nm-Chips
TSMC is one of renowned manufacturers such as Nvidia, AMD, Qualcomm and Broadcom to its customers. These include electronics giant Apple. As a “fabless company”, i.e. a semiconductor manufacturer’s sites without their own manufacturing, Apple is also drawing on the Expertise of the Taiwanese company. So 7-nm Chips from TSMC to come about in this year’s iPhone collection likewise. According to the forecast in the quarterly report, the iPhone will account for business in the third quarter of about 10 per cent of the turnover of TSMC. Also AMD is expected to make use of the new Chips use. In order to save AMD a competitive advantage over industry leader Intel. This had recently announced to give his 10-nm Chips next year in mass production, after technical problems were encountered.