Wednesday, November 2nd 2022

One of TSMC's Biggest Customers Cuts 3nm Wafer Orders As Consumer Demand Deflates

by
btarunr
 Discuss (52 Comments)
A major unnamed customer of TSMC has reportedly cut their order for 3 nm wafers. Foundry customers usually place orders for cutting-edge foundry nodes several quarters in advance, in exchange for priority foundry allocations, and preferential rates, while foundries use revenues from these orders to develop the capacity for manufacture these chips. The 3 nm customer could be anyone—Qualcomm, Mediatek, NVIDIA, AMD, or Intel. Order cancellations have reportedly had a domino-effect on the upstream supply-chain of TSMC, hitting suppliers of raw materials, manufacturing equipment, and other consumables. There is an industry-wide slump in demand for consumer electronics and PC hardware, which reflects in the slump in revenues and/or guidance in quarterly financial results releases by prominent companies.
Source: UDN

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52 Comments on One of TSMC's Biggest Customers Cuts 3nm Wafer Orders As Consumer Demand Deflates

#1
cvaldes
TSMC's biggest customer -- Apple -- isn't listed amongst that group.

Curious.

An inadvertent omission?
Posted on Reply
#2
Hyderz
no1 is buying because living costs have sky rocketed and winter is coming... so need money for food and heating
Posted on Reply
#3
prtskg
cvaldesTSMC's biggest customer -- Apple -- isn't listed amongst that group.

Curious.

An inadvertent omission?
My first thought was Apple too but future demand could be from above mentioned companies as they remain behind Apple.
Posted on Reply
#4
Space Lynx
Astronaut
the chip industry needs to help their older nodes expand, not as much profit, but will still be some. the car industry still doesn't have enough chips from what I understand.
Posted on Reply
#5
The Quim Reaper
There is an industry-wide slump in demand for consumer electronics
..and their answer to this slump?

'Hey everyone, lets put all our prices up by absurd, inflation busting amounts!'

Bunch of greedy, price gouging Twots.
Posted on Reply
#6
Unregistered
Probably most are for smartphones, which ironically given that all of them going backwards except maybe Sony.
#7
Space Lynx
Astronaut
The Quim Reaper..and their answer to this slump?

'Hey everyone, lets put all our prices up by absurd, inflation busting amounts!'

Bunch of greedy, price gouging Twots.
Just hold out longer, it will all come crashing down.
Posted on Reply
#8
rotflmao
A serious price increase would be the perfect solution to this issue. And all other issues too.
Posted on Reply
#9
Wirko
CallandorWoTthe chip industry needs to help their older nodes expand, not as much profit, but will still be some. the car industry still doesn't have enough chips from what I understand.
And it's happening, for the first time in recorded history. At least on nodes like 28 nm and below, maybe not on older ones. There was news recently that TSMC is pushing their customers to transition to 28 nm, known as "the last cheap node", so they can get rid of very old equipment.
Posted on Reply
#10
ARF
rotflmaoA serious price increase would be the perfect solution to this issue. And all other issues too.
Sounds like downward spiraling - the less demand, the more you increase the prices, the more you amplify the willingness of people NOT to buy .
Posted on Reply
#11
N3utro
Hyderzno1 is buying because living costs have sky rocketed and winter is coming... so need money for food and heating
If I had to bet i'd say Nvidia was the one, and no one is buying because market is flooded with cryptominers GPUs
Posted on Reply
#12
DeathtoGnomes
ARFSounds like downward spiraling - the less demand, the more you increase the prices, the more you amplify the willingness of people NOT to buy .
thats an ugly spiral that will come to no good.
Posted on Reply
#13
HTC
ARFSounds like downward spiraling - the less demand, the more you increase the prices, the more you amplify the willingness of people NOT to buy .
There's a reason i mentioned this in another topic: undercutting the main competitor MASSIVELY would be a good way to earn profits LATER ON, though it would come @ the price of low profits NOW.

Still, it's a high risk high reward strategy: one that, should it fail, would have SERIOUS economic repercussions.
Posted on Reply
#14
Bomby569
all that investment in new fabs is going to be paid by someone, and with clients cutting orders (more should follow), prices will have to go up for TSMC's clients
Posted on Reply
#15
MarsM4N
WinFuture is reporting the customer is Intel. :cool: Apparently they moved back 3nm orders a year because of collapsing PC business.
Samsung also seems to postpone 3nm. AMD, Nvidia, MediaTek, Qualcomm and Broadcom also most likely won't move to 3nm. Likely only Apple will be in business for 3nm this and the next year.

I bet AMD is also cutting Zen4 production & ramping up Zen3 (esp. 5800X3D). They're flying off the shelfs like crazy, lol.
Posted on Reply
#16
zlobby
N3utroIf I had to bet i'd say Nvidia was the one, and no one is buying because market is flooded with cryptominers GPUs
Makes sense to me.
Posted on Reply
#17
Fatalfury
Just like Oil Companies..
If there's no Demand...make one by creating artificial shortages. SO prices will rise up in a few months time.
Posted on Reply
#18
zlobby
MarsM4NWinFuture is reporting the customer is Intel. :cool: Apparently they moved back 3nm orders a year because of collapsing PC business.
Samsung also seems to postpone 3nm. AMD, Nvidia, MediaTek, Qualcomm and Broadcom also most likely won't move to 3nm. Likely only Apple will be in business for 3nm this and the next year.

I bet AMD is also cutting Zen4 production & ramping up Zen3 (esp. 5800X3D). They're flying off the shelfs like crazy, lol.
Smartphone market is brutal. They need every advantage they can get, so huge doubt that they won't go for 3nm.
Posted on Reply
#19
Vayra86
CallandorWoTJust hold out longer, it will all come crashing down.
Exactly. Patience....
Posted on Reply
#20
Bomby569
Vayra86Exactly. Patience....
no way, they have practically a monopoly on the high end, they made massive investments in new fabs. They will have to and can increase prices and customers will still need to come to them and pay the sticker price, they have no where else to go to
Posted on Reply
#21
GunShot
I mean... seriously, this is super great news! Drain the swamp and the super ~ pumping ~ overvalued abomination companies and staff.

The winners (Apple, etc.) will weather the storm but the crooks (TSMC, AMD, etc.) needs to hold on to something very tight!

It is what it is!
Posted on Reply
#23
MrBeasterer
If Intel listen to us, the customers, they would not have to do over-purchasing and downscaling. They should have done a better job of enabling things like Performance Maximiser across all their existing user base which is huuuggge.
Posted on Reply
#25
Dux
End of covid lockdowns = less people gaming + end of ETH GPU mining= AMD,Nvidia in tears.
Posted on Reply
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