US-China trade war to cause inventory glut at TSMC?

Posted on Friday, Jun 12 2020 @ 08:32 CEST by Thomas De Maesschalck
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EE Times offer some dire speculation about the consequences of the US-China trade war for Taiwanese foundry TSMC. While the firm remains optimistic, some analysts believe that if the situation isn't resolved, it could result in excess inventory. Furthermore, there's some fear for a lot of challenges for the global supply chain. In particular, there's worry that this could become broader than something that's isolated to Huawei.
Yet analysts worry that excess inventory in the supply chain and the potential loss of sales to HiSilicon, TSMC’s second-largest customer, will impact the foundry and other electronics companies later this year.

“I don’t see any winners from this scenario,” says Brett Simpson, senior analyst with UK-based Arete Research. “It’s going to be a very challenging 12 months or so for the world’s supply chain. A lot of businesses that buy semiconductors are worried about business continuity.”

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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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