Chipmaking Giant Slashes Capital Spending by 10 Percent, Slowdown Warning to Tech Sector

Chipmaking Giant Slashes Capital Spending by 10 Percent, Slowdown Warning to Tech Sector
A chip by Taiwan Semiconductor Manufacturing Company (TSMC) is seen at the 2020 World Semiconductor Conference in Nanjing in China's eastern Jiangsu province on Aug. 26, 2020. STR/AFP via Getty Images
Naveen Athrappully
Updated:

Taiwan Semiconductor Manufacturing Co. (TSMC) has slashed its capital spending despite posting strong profits, with the company expecting the market to slump in the near future.

Capital expenditure (capex) for 2022 was slashed to roughly $36 billion in 2022, down from previous estimates of at least $40 billion. About half of the change is due to capacity optimization based on the current medium-term outlook and the other half is due to continued tool delivery challenges,” Chief Financial Officer Wendell Huang said during a media call, according to Reuters.
Naveen Athrappully
Naveen Athrappully
Author
Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.
Related Topics