As the deficiency in components continues to persist, TMSC, the largest foundry in the world, said it has an exorbitant amount of chips stored.
Chip Shortage is Rampant Globally, but TMSC Says it has Excessive Pool
Components cause global supply chain constraints. The most severe component shortage is for chips that rival a few historical imbalanced markets. However, it's unique in the number of product families affected.
Unexpectedly, TSMC asserts its "excessive chip inventory" results from the "softening demand" for PCs, cellphones, and other consumer items. According to TSMC, the semiconductor market would take a few quarters to stabilize.
TSMC CEO C.C. Wei said their suppliers have been having serious problems in their supply chains, extending the times for both the advanced and mature nodes to get tools.
The company is the biggest foundry in the world. The firm develops semiconductors using designs made by businesses like Apple, Qualcomm, MediaTek, and others.
Additionally, it beat expectations as it earned 237.03 trillion Taiwanese dollars ($7.9 billion U.S. dollars) in the second quarter, a 76.4% increase over the same period the previous year. TSMC's net income was a record-setting quarter.
Long-term, the CEO is optimistic about semiconductor demand. He said that despite macroeconomic obstacles, they believe the long-term growth trajectory of semiconductor demand is still intact.
However, the trend is not in favor of TSMC investors as the foundry's stock price has dropped $85.63 or $48.20, or 36.02 percent, during the last six months. Given its clientele, which includes Apple, MediaTek, and Qualcomm, the foundry shouldn't face any long-term financial difficulties.
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Chip Shortages Amidst Pandemic Shake Japanese Entrepreneurs' Confidence
According to a Reuters poll, Japanese manufacturers' confidence was low in July due to pressure from a major chip shortage, China's vigorous pandemic response, and a weak yen that is making imported supplies more expensive.
The quarterly tankan survey conducted by the Bank of Japan is carefully followed by the Reuters Tankan, which indicated that both manufacturers' and service-sector morale would only moderately improve over the following three months.
Business managers were concerned about the effects of China's COVID-19 limits and a lingering chip and part shortage, according to a survey conducted of 495 large and midsize companies where 248 replied between June 29 and July 8.
May saw the fastest output reduction in Japan's industries in two years, partly due to the adverse effects of China's coronavirus restrictions, particularly in Shanghai.
Since there is still a chance of new COVID-19 limits, some analysts think it may take some time before Japanese industry, especially the vital auto sector, benefits from a revival in economic activity in Shanghai.
The indicator is predicted to nudge up to 13 in October, though much will rely on how things shake out in the autos/transport equipment subsector. In July, the sentiment remained incredibly depressing.
