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I think the point is why has revenue dropped 10% for TSMC if everything downstream is going gangbusters? Doesn't it point to a drop in demand for chips, and the
by cjrp 3y ago
I think the point is why has revenue dropped 10% for TSMC if everything downstream is going gangbusters? Doesn't it point to a drop in demand for chips, and therefore the retail devices they go inside?
- gtirloni 3y agoIf downstream things have gone to shit already, why the prediction that a crisis will be in the _future_? TSMC's revenue grew too much during the pandemic. It's just normal it should contract when things go back to normal.
- cjrp 3y agoPotentially this is a tipping point for the things downstream. Honestly I’m just thinking out loud here.
- nyokodo 3y ago> Doesn't it point to a drop in demand for chips Yes, but in isolation it isn't evidence of an economic downturn in general. It is evidence of the whiplash of consumer demand shifting during COVID from services to goods and back again along with the cost of retooling the industrial plant to match that demand. There's a range of ripple effects across industries that will be ongoing for some time.
- HWR_14 3y agoDuring COVID, with chip shortages, everything downstream bought as many chips as they could get. Now they have stockpiles to work through.