Tsmc cuts its growth expectations for this year 2018

TSMC has reduced its forecast for revenue growth for this year 2018 to 10 percent, from the 10-15 percent previously estimated, something that is fundamentally due to lower demand for smartphones, and the uncertainty that mining has created. cryptocurrencies in recent weeks.

TSMC cuts its forecasts due to lower demand for smartphones and the uncertainty of crypto mining

TSMC Co-CEO CC Wei said the company's revenue will likely grow 10 percent annually in the second quarter of this year 2018, less than expected and driven by demand for smartphones that it's still smooth. The company's revenues during the first quarter of 2018 fell 10.6 percent compared to the same period of the previous year.

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The team believes that during the second quarter, revenue will drop 7-8 percent sequentially with a gross margin that will drop below 50 percent. In addition to lower demand for smartphones, the lack of sustainability in the demand for crypto mining has also contributed , as Bitmain Technologies and Canaan Creative are reportedly among TSMC's main clients dedicated to crypto mining.

Wei stated that TSMC's 7nm manufacturing process technology is the industry leader in terms of performance, power and area density, as well as its schedule. The foundry expects the sales generated by this node to represent more than 20 percent in the fourth quarter of 2018, and 10 percent throughout the year.

Wei reiterated that TSMC will have more than 50 clients, with its 7nm process technology by the end of 2018, the node is already in volume production.

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