The Taiwan Semiconductor Manufacturing Company (TSMC) expressed their observations in the current market that focus on the lower demand for smartphones among the public. TSMC is famous for being Apple's supplier for its chips and internal components that focus on the many designs by the company.
It may also mean that the company may be looking into less chip production in its operations due to this trend.
Apple Supplier, TSMC Say There Is Less Demand for Smartphones
Logo at the Taiwan Semiconductor Manufacturing Co. headquarters in Hsinchu, Taiwan, on Wednesday, April 7, 2021. The TSMC is a key supplier to Apple, and its the iPhone makers commitment to become carbon neutral by 2030 that is driving much of the change throughout the supply chain.
TSMC revealed (via Nikkei Asia) that demands for smartphones and PCs are starting to slow in the present market, and it may mean a lot of implications for the company's career. The semiconductor manufacturing company talked about how it is now different from the past demands for the devices available to the public.
It may mean that TSMC is expressing that its chip production will slow down with this shift on the curve, as demand is a massive factor that affects its manufacturing and timeline for its products. TSMC Chairman Mark Liu said that many factors affect this trend, including the geopolitical issues that the world faces and China's present lockdown due to COVID-19.
TSMC: Is It Lessening Chip Production for Apple?
Mac Rumors reported that Liu claimed that TSMC is still adjusting its manufacturing for the many demands in the market. Despite it being less compared to before, the company aims to deliver the ample amount needed, particularly as it is facing many obstacles on its end, still not yet capable of fulfilling the component demands.
Apple and TSMC
TSMC focused on bringing smartphone semiconductors to many users in the market, fulfilling its role as a manufacturing company for many services and companies it partnered with in the past and present. The company knows the market on an enormous scale, and they previously said that the chip shortage is a significant problem in 2022.
Apple and TSMC both worked together to deliver the famous chip that powers the iPhone and iPads now, with the A-series bionic chips in the market. The collaboration does not stop there, as Apple's design with the M-series chip also came from TSMC's production and manufacturing, making the relationship mutual.
The computer and smartphone components are facing a shortage now, particularly with the raw materials needed for the company's manufacturing. However, that may not be the issue now, especially as the demand for smartphones is less, based on what TSMC observed in the market.
It may mean that the company will produce less as the demand may not require them for the massive needs.
Related Article: TSMC's Budget for Upgrading Capacity in 2022 Shoots to $44 Billion After Record Profits
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Written by Isaiah Richard
