TSMC says consumer demand for smartphones, PCs and TVs is slowing

[Shawn Knight]

The big picture: The world's largest contract manufacturing and design company is seeing signs of slowing consumer demand for certain electronics as geopolitical uncertainties and pandemic-related lockdowns in China persist. It's not a real concern for Taiwan Semiconductor Manufacturing Company, however, as the outfit is already dealing with more orders than it can fulfill.

TSMC Chairman Mark Liu said demand for smartphones, PCs and televisions is waning, especially in China. Part of the problem is the fact that costs for components and materials are on the rise due to supply chain issues, pushing up production costs in the process. "Such pressure could eventually be passed on to consumers," Liu noted.

It's not all doom and gloom, however, as Liu said TSMC continues to see robust demand for high-performance computing components, Internet of Things devices and components for the automotive industry.

The executive added that they still are not able to meet customers' demand at current capacity, which will force the company to reorganize and prioritize orders for areas still experiencing heavy demand.

In January, TSMC said it expects to grow by at up to 20 percent (in US dollar terms) this year and will spend upwards of $44 billion to boost capacity in 2022.

TSMC's observations jive with what we've heard from others as well. A report from Nikkei Asia earlier this week claimed Apple has asked suppliers to cut production of the new iPhone SE by as much as 20 percent due to lower-than-anticipated demand.

Image credit Sundry Photography, Laura Ockel

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https://www.techspot.com/news/94009-tsmc-consumer-demand-smartphones-pcs-tvs-slowing.html

 

[Dimitriid]

It really should make you realize but at least wonder how much of the "demand" for consumer electronics is just induced by very heavy investments in marketing: Most people are not really interested in new tech what they have has been good enough for a long time

 

[wiyosaya]

There are only so many people in the world who can afford such devices, so it would seem that market saturation would also be a consideration. In addition, I, for one, refuse to upgrade to every new model as they become available. To me, consumerism is not all that the marketers want us to believe it is.

 

[p51d007]

If we are lucky, we will start to see the END of the "keep up with the Jones' " mentality when it comes to smartphones. Oh! I gotta have a new one! Why? Because the family next door bought one, and I don't want to be left out of the cool people group.
It's the same with fashion, homes, vacations, vehicles...I know I get people asking me, whenever I buy a newer vehicle, to replace mine that typically is 10-15 years old, why didn't you get an SUV? Everyone is getting an SUV. Why did you get another Mustang. You've had 5.
Oh, I don't know...because I like to drive a Mustang?

 

[Theinsanegamer]

I'm sur eit has nothing to do with rediculous pricing and the economy starting to slow down for normal people. With everything going up faster then wages only the 5% can afford these cards, and that market is getting saturated.

 

[kiwigraeme]

There probably be a glut soon on older wafers - the all the 4nm, 5nm, 7nm is probably doing just dandy - given harder to output x amount as you go up the food chain ,
Probably super easy to whack out 3 to 5 year old stuff now ( low bin rate , higher output speed ).
I mean what would the average big screen LED TV need for a SOC - most people don't buy flagship TVs

 

[toooooot]

Lately, all I hear about Semiconductors can be summed up in {something happened}=the prices will go up.
Damn it people, we have rising inflation going on, can we at least try not go go so quickly with rising prices.

 

[Watzupken]

There is no chance demand continues to be red hot when prices are this high. Price dampens demand. So when they keep increasing prices, at some point, people will slow down their purchases. They can continue increasing prices, but expect lower demand over time. It is true that we need to buy electronics, but with high prices, we just don’t upgrade that often.

 

[emmzo]

There's market saturation and tough times ahead, priorities change. Globalism failed. We, in Europe, got lazy and complacent with cheap Chinese stuff, cheap Russian energy, it's time to pay the bills for our stupidity. We have to bring back essential manufacturing before it's too late!

 

[Usukosej]

Ofc demand is going down when prices go up. They went up because supply was low. Now supply is decent but prices are still high. People will buy again when prices go down.

 

[Avro Arrow]

So what I'm hearing is:

Demand is high: Consumers pay more
Demand is low: Consumers pay more

Someone is speaking with a forked tongue!

 

[Aceseven]

Prices are higher than clouds, I want a new gpu, 3060ti specifically but theres no way im paying 200 over msrp, yes I can afford to do that but I'm not.

 

[Uncle Al]

With so many people finally going back to work, is this really a surprise. Give em 18 months to pay down some of those whooping credit card bills and they will start buying again .....

 

[pcnthuziast]

Translation: Prices have gone up. Way up. As have our margins. There are less consumers who can afford these higher prices, even the entry level. As such the volume model is dead to us and our ideal path to end game is a top to bottom product line of premium products with price tags to match.

 

[WhoCaresAnymore]

Do you know how many times I’ve put a new graphics card or processor in my basket. Only to delete it. Dumb as hell to waste money going into a recession and out of control inflation.