The news: TSMC forecast sales would tumble 16% in Q2, reflecting the continued slowdown in the tech sector, per Yahoo.
Why it’s worth watching: The world's largest chipmaker said industry inventories were higher than expected and would only rebalance to a healthier level in Q3.
What’s next? TSMC has committed to building various chip factories in the US, Japan, and Europe, on top of investing TWD 1.86 trillion ($60.4 billion) in a new Taiwanese factory.
Our take: 10 years is an eternity in terms of innovation. Some of these chipmakers could seek out incentives elsewhere or abandon factory expansion plans as they try to manage short-term slowdowns and chip oversupply.
This article originally appeared in Insider Intelligence's Connectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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