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In addition to inventories like other commenters mention, remember this is a capital intensive business. When chip makers collectively add more capacity than is
by cheriot 3y ago
In addition to inventories like other commenters mention, remember this is a capital intensive business. When chip makers collectively add more capacity than is needed, prices drop (ie revenue drops).
It could also be "normalizing" demand as people shift spending from goods to services.
The possibility space is much larger than global recession.
- cs702 3y agoI hope you're right. Keep in mind: TSMC is entrenched in a lot of markets, and a 10% drop is larger than anyone -- including the company -- was expecting. Sometime ago I recall seeing that changes in TSMC's revenues are pretty highly correlated with measures of global economic activity such as changes in Apple's revenues and changes in global GDP.