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Global Chip Supplier Expects Dip in Demand for Crypto Mining Hardware
Despite predicting a possible Q4 revenue growth, global chip manufacturing firm Taiwan Semiconductor Manufacturing (TSMC), has ruled the high probability of a dip in global demand for crypto mining hardware.
Taiwan Semiconductor Manufacturing says it expects a minimal revenue growth in the fourth quarter, mainly due to solid sales of high-end chips for premium smartphones.
The worldâs largest independent semiconductor foundry says it precisely expects Q4 revenue to increase to somewhere between $9.35 billion and $9.45 billion, as compared to $9.21 billion a year ago. However, the expected growth will be allegedly offset by the low sales of cryptocurrency mining equipment.
While TSMCâs chief financial officer Lora Ho revealed that the company is forecasting a âcontinued steep rampâ of demand for TSMCâs 7 nanometre for a number of âhigh-end smartphones,â the CFO pointed at the âcontinued weaknessâ in crypto mining demand â as well as inventory management by clients â as potential reasons for a âpartial offsetâ of the companyâs revenues.
However, the company clarified that while servicing revenues for premium phones will continue to grow, the middle-class smartphone market will drop this year.
Tech giant Apple, which is reportedly the âmost important customerâ of the TSMC, is set to be a key contributor to the companyâs revenue growth in the last quarter of 2018, with the release of its new iPhone models.
TSMC had lowered its revenue estimates several times due to a low demand for high-end smartphones and cryptocurrency mining.
For instance, in April, the company reduced their revenue estimates based in part on an uncertainty in demand for crypto mining. And in July, Taiwan Semiconductor Manufacturing again predicted a decline of the annual revenue and capital expenditure estimates, citing the preference of miners for lower-powered chips over TSMCâs higher-powered chips due to the crypto price volatility and stricter regulations in the industry this year.
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