Bad news for smartphone market: TSMC cuts down orders by up to %50

TAIPEI, Nov 11(TechtUSA) - Taiwanese chipmaker TSMC (2330.TW) had began to recover from the effects of the chip crisis. However, recent reports show that the tide turned against chip giant. It is reported that TSMC will cut chip orders by up to %50. However, this decrease will be the largest in the recent times. The company will now take half of the chip orders that it currently receives. 

TSMC will reduce chip productions, orders will be cut by %50

Despite inflation and the global economic crisis, TSMC had greatly increased its revenues. However, in the third quarter, most technology and chip giant announced that their revenues were starting to decrease. There were also heavy declines in the phone and tablet market. In addition, the Taiwan-based chip giant advised its employees to "use your annual permit" in the past weeks. Then, TSMC showed up with  a striking statement.

According to the details, TSMC is going to decrease by 50% in terms of overall orders they receive. The inability of technology giants to reach high sales rates caused decreases in these chip orders. Thus, the chip giant took the decision to cut its orders, creating a shock effect in the chip industry.

With Apple and Intel delaying their 3nm process chips to 2023, TSMC has seen drops of up to 77% in their 3nm chip production. Factors like these are causing the chip giant to cut orders. Such a decision by TSMC may directly affect the prices of smartphones in the mobile market. Because having fewer chips means fewer phones on the market.