Worlds Largest Chip Supplier Expects Dip in Demand for Crypto Mining Hardware, Tariffs an Issue


Global Chip Supplier Expects Dip in Demand for Crypto Mining Hardware

Despite predicting a possible Q4 revenue growth, global chip manufacturing firm Taiwan Semiconductor Manufacturing (TSMC), has ruled the high probability of a dip in global demand for crypto mining hardware.

Taiwan Semiconductor Manufacturing says it expects a minimal revenue growth in the fourth quarter, mainly due to solid sales of high-end chips for premium smartphones.

The world’s largest independent semiconductor foundry says it precisely expects Q4 revenue to increase to somewhere between $9.35 billion and $9.45 billion, as compared to $9.21 billion a year ago. However, the expected growth will be allegedly offset by the low sales of cryptocurrency mining equipment.

While TSMC’s chief financial officer Lora Ho revealed that the company is forecasting a “continued steep ramp” of demand for TSMC’s 7 nanometre for a number of “high-end smartphones,” the CFO pointed at the “continued weakness” in crypto mining demand — as well as inventory management by clients — as potential reasons for a “partial offset” of the company’s revenues.

However, the company clarified that while servicing revenues for premium phones will continue to grow, the middle-class smartphone market will drop this year.

Tech giant Apple, which is reportedly the “most important customer” of the TSMC, is set to be a key contributor to the company’s revenue growth in the last quarter of 2018, with the release of its new iPhone models.

TSMC had lowered its revenue estimates several times due to a low demand for high-end smartphones and cryptocurrency mining.

For instance, in April, the company reduced their revenue estimates based in part on an uncertainty in demand for crypto mining. And in July, Taiwan Semiconductor Manufacturing again predicted a decline of the annual revenue and capital expenditure estimates, citing the preference of miners for lower-powered chips over TSMC’s higher-powered chips due to the crypto price volatility and stricter regulations in the industry this year.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide