According to the semiconductor industry equipment industry, TSMC's capital expenditure next year will be reduced by 10% from this year's 40 billion US dollars, and the actual number will be announced early next year.

(Reuters file photo)

[Reporter Hong Youfang / Hsinchu Report] The semiconductor boom has declined, and the memory giant Micron has taken the lead in cutting more than 30% of its capital expenditure next year. The leading wafer foundry company TSMC (2330) will also attract the industry's attention next year's capital expenditure trend; semiconductor industry equipment According to industry reports, TSMC's capital expenditure next year will be reduced by 10% from this year's 40 billion US dollars, and the actual number will be announced at the beginning of next year.

Raising OEM prices against the trend may have a negative effect

Wafer foundries in China and South Korea have successively lowered the foundry prices for mature processes, but TSMC recently updated the foundry quotations with customers, which is equivalent to raising the foundry prices of mature 8-inch and 12-inch processes next year against the trend.

There is a lot of discussion in the industry that the foundry capacity of mature processes will increase next year, but the demand will decline. TSMC will instead increase prices, which may cause negative effects, and some customers will look for other foundry sources.

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The industry believes that TSMC's price increase against the trend may be related to too much investment.

TSMC was optimistic about the explosion of market demand last year. It is expected to invest US$100 billion to increase production capacity in 3 years. Following the capital expenditure of US$30 billion last year, this year's capital expenditure was originally planned to be US$40 billion to US$44 billion. There is a shortage of components, and capital spending will fall to $40 billion, with some spending deferred until next year.

With soaring inflation and the rapid slowdown of the global economy, the demand for consumer markets such as PCs and mobile phones has declined. Major TSMC customers, including Huida, Supermicro, and MediaTek (2454), are trying to digest their inventories; the semiconductor industry equipment industry It is reported that TSMC will inevitably be affected by the industrial environment, and the capital expenditure next year will be reduced by 10% compared with this year's 40 billion US dollars. The actual number will be announced early next year.

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