The second half of the year it will be quite difficult for the computer industryand a clear example comes today through a Digitimes report, where it reveals that major chipmakers, Apple, AMD and NVIDIAhave started to reduce their demand for wafers so as not to oversupply the market and keep excess inventory in an attempt to find an outlet.
“Overall, the market is bearish that the market situation will continue to deteriorate in the second half of the year, and the ripple effect of destocking and reducing orders will break the line of defense of consumer confidence in semi -drivers”, they specify. the sources.
we start with Manzana and the mobile market, and is that even if the iPhone 14 not yet officially announced, it is stated that mass production has already started and was reduced by 10% in anticipation of a drop in demand.
In the PC market, we are talking about a sharp drop in demand desktops and laptops, which means AMD and NVIDIA have no other options that reduce sales prospects and with that, ask TSMC to provide less chips than expected.
More specifically, from amd it is stated that it has reduced wafer orders to 7nm and 6nm manufacturing processes at TSMC in about 20,000 units both for the fourth quarter of this year (Q4 2022) and for the start of the next one (Q1 2023). In principle, its 5nm orders have not been affected and it will maintain its initial production.
In the case of Nvidia, the thing is a little more complicated, and that is that to get out of the problems that Samsung Foundry was causing, the company pre-purchased a large number of wafers from TSMC to ensure that it was one of its major customers in the 5nm manufacturing process. Despite this, and given what happened with the GeForce RTX 30 Series, which despite the price drop, sales have still not been reactivated, not to mention the second-hand market, which will soon collapseit is stated that the company reduced production of GeForce RTX 40 Series graphics cards.
It is indicated that if TSMC offered such a concession, it would not be possible until the end of the year or the beginning of 2023 with a possible condition that NVIDIA be responsible for it. find another business buy the number of slices it will release.
Interestingly, the shares of the four companies mentioned show red numbers on stock, and is that TSMC’s revenue is expected to decline. With curiosity, no mention of intelthe only one that stayed green.