TSMC Slashes 2015 Capex by over 25% to $8 Billion
Alan Patterson, EETimes
10/15/2015 00:00 AM EDT
TAIPEI — Taiwan Semiconductor Manufacturing Co. (TSMC), which for the first time this year led the world’s chipmakers with the largest announced capital expenditure, will cut the 2015 budget by more than a quarter to $8 billion after demand slumped.
The world’s largest chip foundry earlier this year set its planned capex within a range of $10.5 billion and $11 billion.
A slowdown in global demand and inventory reduction that will probably continue during the fourth quarter this year have had a negative impact on business, TSMC Co-CEO Mark Liu said at a meeting to announce the company’s third-quarter 2015 results. Unit growth for smartphones, the largest business driver for TSMC, is slowing, Liu added.
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