Given that TSM is one of largest and most advanced contract fabs out there, there does not appear to be a slowdown considering they are expanding capex spending by $5billion. All this demand fueled by demand for consumer electronics..
Side note… TSM’s strong quarter was almost obvious. There were several articles and speculation weeks before that many companies were having their contract lead time for 7nm delayed from 1month to 6month, and this fueled concerns about supply shortages at some companies like AMD. Since TSMs 7nm is shared between large customers like Qualcomm, Apple, AMD, etc…. Those delays and shortages indicated TSM was running at full capacity.. IE business is good, increasing consumer electronics demand…..I did mention this a few weeks ago… But hey, don’t let extreme pessimism of current political climate get in the way of that warped perception of doom and gloom as a means of mental therapy.
TAIPEI (Reuters) – Apple Inc supplier TSMC <2330.TW> raised its 2019 capital spending plan by up to $5 billion on Thursday and forecast a nearly 10% rise in fourth-quarter revenue on strong demand for faster mobile chips and new high-end smartphones.
The bullish forecast by the world’s top contract chipmaker should ease investor fears of a global tech slowdown, as the world economic growth outlook has dimmed largely due to a 15-month trade war between the United States and China
