Semiconductor manufacturer Taiwan Semiconductor Manufacturing Company (TSMC) has said that the demand for consumer electronics like smartphones and laptops is slowing down due to the continued geopolitical uncertainities and new COVID-19 related lockdowns and restrictions in China. TSMC’s chairman Mark Liu has said that consumer interest in China specifically is falling, further warning about the rising cost of components and materials. He said that while production cost is going up for chip companies, he believes the “presssure could eventually be passed on to customers.”
“Everyone in the industry is worried about rising costs across the overall supply chain… The semiconductor industry already and directly experienced that cost increase,” he was quoted in a MacRumours report as saying. Liu also said that the demand may be impacted by higher costs. The chairman also said that TSMC is not changing its growth targets and is still unable to meet customers’ demand with its current capacity.
Earlier, there were reports of Apple cutting down the production of its latest iPhone, the iPhone SE 3. The Cupertino-based giant was rumoured to be cutting down on the production of its latest affordable iPhone just weeks after it was launched. Apple has allegedly told suppliers that the company wants to cut back on iPhone SE 3 production by about two to three million units because of a “weaker than expected” demand.
According to a report in Nikkei, the company plans to make about 20 percent fewer iPhone SEs next quarter than originally planned, citing weaker-than-expected demand.