Apple chip supplier TSMC tempers 2023 capital expenditure outlook to US$32 billion as global semiconductor demand weakens

TSMC’s capital spending should wind up closer to the bottom end of a previously forecast US$32 billion to US$36 billion range, chairman Mark Liu said

It reaffirmed projections for revenue in the first half of 2023 to decline by about 10 per cent in US dollar terms

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Published: 3:31pm, 6 Jun 2023Updated: 3:34pm, 6 Jun 2023

Taiwan Semiconductor Manufacturing Co (TSMC) tempered its outlook for 2023 capital spending, as the main chip supplier to Apple grapples with soft demand for smartphone and computing chips.

TSMC’s capital expenditure should wind up closer to the bottom end of a previously forecast US$32 billion to US$36 billion range, company chairman Mark Liu told reporters after hosting the firm’s annual shareholders’ meeting on Tuesday.

It reaffirmed projections for revenue in the first half of 2023 to decline by about 10 per cent in US dollar terms.

The more moderate projection suggests TSMC, like its rivals across the electronics industry, remain cautious in the face of a cratering in consumer spending and an uneven post-Covid-19 Chinese economic recovery.

Mark Liu, chairman of Taiwan Semiconductor Manufacturing Co, speaks during the company’s annual shareholder meeting in Hsinchu, Taiwan, on June 6, 2023. Photo: Bloomberg

The Taiwanese chip linchpin has said previously semiconductor demand is likely to improve in the latter part of this year, after personal computer, server and smartphone makers digest inventories.