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.
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TSMC Anticipates Weakened Fourth Quarter Growth
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
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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