TSMC tells vendors to delay chip equipment deliveries, sources say

Taiwan's TSMC has instructed its major suppliers to delay the delivery of high-end chipmaking equipment due to concerns about customer demand, according to sources. This move, aimed at controlling costs, reflects the company's growing caution about demand outlook. Suppliers expect the delay to be short-term. Companies affected by the delay include ASML, a maker of lithography equipment essential for high-end chipmaking. Shares in TSMC suppliers, including ASML, declined following the report.

TSMC is also dealing with delays at its $40 billion chip factory in Arizona. The company has had to push back production at the plant by a year to 2025 due to recruitment struggles and union pushback on efforts to bring in workers from Taiwan. TSMC's concerns about demand are shared by other companies, including Apple, a key TSMC customer. The global smartphone slump and reports of Beijing ordering some government employees to stop using iPhones at work are causing further unease at TSMC.

Key takeaways

Taiwan's TSMC has instructed its major suppliers to delay the delivery of high-end chipmaking equipment due to concerns about customer demand.
Shares in TSMC suppliers, including Dutch-based ASML, declined following the report.
TSMC is also dealing with delays at its $40 billion chip factory in Arizona, and the instruction to delay is aimed at controlling costs.
Despite the delay, suppliers expect it to be short-term and TSMC's sales are forecast to grow 30% this year.

TSMC tells vendors to delay chip equipment deliveries, sources say

Key takeaways

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