The Taiwanese semiconductor manufacturer expects to spend about $ 36 billion in 2022 on capital equipment, compared to previous expectations of spending at least $ 40 billion, according to a company statement.
The United States’ trade restrictions against China are hurting international semiconductor companies and might potentially lower their sales.
The administration of US President Joe Biden released a comprehensive set of export regulations last week, which included a process to prevent China from purchasing specific electronic chips produced anywhere in the globe using American-made machinery.
The Taiwanese corporation is bracing for a wider decrease than anticipated, according to the dramatic decline in spending, an essential measure of growth expectations across smartphones, servers, and electric cars.
The market value of the corporation decreased to roughly 320 billion dollars in the most recent quarter from more than $ 550 billion in January, which resulted in significant losses for the “TSMC” share.
According to a report, Intel planned to lay off thousands of workers in an effort to cut costs in response to the slowdown in the global personal computer market, and the “Apple Materes” company, which makes equipment for making chips, has lowered its expectations for the fourth quarter of this year.
According to the Bloomberg article, the company’s sales and marketing departments may get employee discounts of approximately 20%.
Global inflation and geopolitical unrest had a substantial negative impact on the sales of computers for businesses like Lenovo, HP, and Dell, and the dramatic decline in demand for computer processors had a negative financial impact on Intel.
According to data gathered by “Kanyeis,” sales of personal computers plummeted globally in the third quarter, falling by 18% overall.
A warning from the biggest chip manufacturer to the global technology sector
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