Apple’s Chief Supplier TSMC Believes a Drop in High-End Phone Shipments but Predicts Growth in a Different Market

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Jan 18, 2018
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TSMC has been reported to win all of Apple’s A12 chipset orders, but even that is not going to be convincing enough for the chip manufacturer to believe that it can turn the revenue tide this year. According to the firm, the premium smartphone market is expected to see reduced shipments, but there are other markets that are expected to pick up the momentum.

TSMC Executive Believes Shipments of Mid-Ranged Devices Will Pick up but Overall Revenue Will Be Less When Compared to 2017

C.C. Wei, Co-Chief Executive Officer of TSMC believes that mid-range to low-end smartphone shipments are going to be increasing and that is possibly due to the value they bring to the table. Unfortunately, the prediction is that overall revenue for mobile phones is not going to be like it was in 2017.

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“In terms of shipment units, high-end smartphones are decreasing for this year. Mid-to-low-end smartphones will increase by several percentage points. For TSMC, overall wafer revenue for mobile phones will be flat compared with 2017.”

TSMC’s mobile division accounted for 50 percent of the company’s overall revenue of $33 billion last year. TSMC will also be manufacturing SoCs for Qualcomm, Huawei, and MediaTek. The manufacturer has also been reported to test out the 5nm and 3nm nodes for future development.

These tests are going to be pivotal if TSMC wants to have an upper hand against Samsung and secure as many high-profile clients as possible.

Furthermore, TSMC believes that the rise of cryptocurrency will help the company’s revenues because consumers will be picking up GPUs that will increase the mining capabilities of their systems.

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Samsung’s executives have yet to report anything on its own clientele and if the smartphone market is going to be reduced in 2018 or not.

Tell us what you think is going to be the outcome down in the comments.

Source: Nikkei

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