What They Say
Nikkei reports news from TSMC that demand for CE goods is starting to slow amid the uncertainties of the Russian war on Ukraine and Covid-related uncertanties in China. The Chairman, Mark Liu is reported to have said that the slowdown is emerging in areas:
“such as smartphones, PCs, and TVs, especially in China, the biggest consumer market,”
As with consumers, suppliers such as TSMC are facing material and component cost increases and will eventually have to pass those on. However, for the moment, the firm is sticking with its capex plans and revenue forecasts. It plans 25% revenue growth and $44 billion in capex this year.
What We Think
This is no real surprise, as we discussed in the article earlier this week about Apple revising down iPhone SE production. Nikkei reported that the IMF is expected to revise down its economic forecast for global growth this year from the previous forecast of 4.4%. China has set a target of just 5.5%, the lowest in 30 years. Last week, Nikkei reported that Winbond is expecting a tricky year to forecast, although it had started well for the firm. (BR)
