"TSMC also said it would trim its capital expenditure for 2022 to $40 billion, down from $44 billion, as it pushed the delivery of some chipmaking equipment to next year."
TSMC said it was due to equipment delays? Has that narrative changed?
Chipmakers warn that the chip boom is over—and manufacturers’ frantic stockpiling is partly to blame
- Thread starter Daniel Nenni
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"TSMC also said it would trim its capital expenditure for 2022 to $40 billion, down from $44 billion, as it pushed the delivery of some chipmaking equipment to next year."
TSMC said it was due to equipment delays? Has that narrative changed?
hist78
Well-known member
I believe Fortune may report it incorrectly or at least didn't truly reflect what TSMC said. TSMC guidance on 2022 CAPEX is between $40 and $44 billion. $40 billion is at the low end of its guidance. Strictly speaking TSMC didn't trim CAPEX from $44 billion down to $40 billion. The official reason given during Q2 2022 earnings call was:
"Next, let me talk about the tool delivery update. As a major player in the global semiconductor supply chain, TSMC works closely with all our tool suppliers to plan our CapEx and capacity in advance. However, like many other industries, our suppliers have been facing greater challenges in their supply chains, which are extending tool delivery lead times for both advanced and mature nodes. As a result, we expect some of our CapEx this year to be pushed out into 2023.
TSMC is actively doing its part to help our tool suppliers address the supply chain challenges. In April, we said that we have increased regular high-level communications to trace the progress and send several teams on site to support our suppliers. Since then, we have worked closely to identify critical chips that are gauging toward delivery. We are working dynamically with our customers and prioritize our wafer capacity to support these critical chips to help mitigate the chip constraint issues.
While challenges remain, the situation is improving. We do not expect any impact to our 2022 capacity plan. And we are able to pull in the delivery schedule for certain amount of tools for our 2023 capacity. We have been working closely with our customers for 2023 so that we can support their demand"