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Demand for Smartphones and Other Consumer Electronics is Slowing, Says Apple Chip Supplier TSMC

Demand for consumer electronics like smartphones and PCs is slowing, thanks to geopolitical uncertainties and more COVID-related lockdowns in China, says Taiwan Semiconductor Manufacturing Company (TSMC) Chairman Mark Liu.

TSMC is one of Apple’s main suppliers, making the A-series and M-series chips that go in Apple devices. Liu’s comments were delivered at the Taiwan Semiconductor Industry Association and were shared by Nikkei.

Customer interest in smartphones is falling in China, and Liu warns about the rising cost of components and materials. Liu believes the “pressure could eventually be passed on to consumers,” which could impact demand due to higher costs.

“Everyone in the industry is worried about rising costs across the overall supply chain… The semiconductor industry already and directly experienced that cost increase,” Liu said, adding that the industry is also concerned about macroeconomic uncertainties this year.

However, TSMC is not changing its growth targets and is still struggling to meet customers’ demands. TSMC plans to prioritize orders for “areas that still see healthy demand.”

In related news, rumors earlier this week said Apple is cutting production for its new third-generation iPhone SE just weeks after its launch. The production cuts are said to be due to uncertainty caused by the current global conflict and alleged low demand

Chris Hauk

Chris is a Senior Editor at Mactrast. He lives somewhere in the deep Southern part of America, and yes, he has to pump in both sunshine and the Internet.