TSMC Reportedly Tells Vendors to Delay Fab Equipment Deliveries

[T0@st]

Reuters appears to be following every (internal) step that TSMC takes—their latest report suggests that company leadership has "told its major suppliers to delay the delivery of high-end chip making equipment." Two anonymous sources believe that execs are anxious about a predicted decrease in customer demand, and cost control plans have been implemented as a temporary measure. ASML is allegedly one of the vendors affected by TSMC's decision making.

Reuters conducted an interview with ASML CEO Peter Wennink a week prior—he acknowledged that some orders for high-end tools had been pushed back, without naming specific client identities, but the situation should resolve itself shortly. He stated that it was a mere "short-term management" issue: "we've had several (news) reports about fab readiness. Not only in Arizona... but also in Taiwan." ASML is reported to be operating at maximum capacity, and overall sales are forecast to grow 30% this financial year.



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[Legacy-ZA]

You have to keep those prices artificially inflated somehow and increase them too at the same time! I mean, that clearly is a sustainable business model, what can go wrong?

 

[chrcoluk]

So they take actions that will reduce demand because they worried demand might drop?

 

[Hjadams973514]

All this talk about AI, I thought demand would be thru the roof. Was the demand associated with AI inflated?

 

[Prima.Vera]

This is what happens when you have Cartel like monopoly.