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During a latest Q3 earnings name, the world’s largest producer of semiconductors, Taiwan Semiconductor Manufacturing Company (TSMC), forecasted weakening progress for the remainder of 2018 because of declining demand for cryptocurrency mining {hardware}. This outlook comes regardless of anticipating a major improve in demand for its 7-nanometer processing chips from the high-end smartphone business.

Also Read: $50 Million Bitcoin Mining Farm Opens in Armenia

TSMC Anticipates Weakened Fourth Quarter Growth

Weak Demand for Mining Hardware Impacts TSMC’s Growth OutlookLora Ho, the chief monetary officer and senior vice chairman of finance for TMSC, predicts that declining demand for cryptocurrency mining {hardware} will offset a lot of the expansion anticipated to be generated by way of gross sales of its 7-nanometer chips.

Ho acknowledged: “Moving into fourth quarter, despite the current market uncertainties, our business will benefit from the continuous steep ramp of 7-nanometer for several high-end smartphones as well as the demand for 16/12-nanometer for the launches of new-generation GPU and AI. However, this growth will be partially offset by continued weakness in cryptocurrency mining demand and inventory management by our customers.”

C.C. Wei, TSMC’s chief govt officer and vice chairman, reiterated Ho’s predictions, stating: “Our second half of 2018 business will be strongly supported by the 7-nanometer ramp-up, which is mainly driven by a few new smartphone launches. However, our business is also negatively impacted by further weakening of cryptocurrency mining demand.”

TSMC Reduces Annual Growth Forecast

Weak Demand for Mining Hardware Impacts TSMC’s Growth OutlookTaking all elements into consideration, Wei estimates TSMC’s 2018 progress will likely be roughly 6.5 p.c, falling barely wanting the corporate’s prediction of between seven p.c and 9 p.c whole progress for 2018, as delivered through the firm’s earlier earnings name.

Ho predicts that TSCM’sl fourth-quarter income ought to attain between $9.35 billion and $9.45 billion – a 10.7 p.c sequential improve within the firm’s income.

Ho also predicts TSMC to post a fourth-quarter gross margin of between 47 p.c and 49 p.c, and an working margin of between 36 p.c and 38 p.c.

Do you suppose that demand for mining {hardware} will improve once more? Share your ideas within the comments part below!

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