Nvidia bullish on the prospects of generative AI applications, Huang Jen-Hsun said H100 by TSMC exclusive foundry, do not consider adding a second wafer foundry.
But TSMC’s business is not affected by Nvidia’s optimistic statement, the company’s top executives said this year not to increase capital spending.
TSMC previously forecasted capital expenditures of $32-36 billion this year. At its annual shareholders meeting on Tuesday, TSMC Chairman Deyin Liu said that this year’s capital expenditures would be implemented according to the lower limit, of $32 billion.
For comparison, TSMC’s 2022 capital expenditures will be $36 billion, and last year it also lowered its capital budget by 10%.
TSMC is going through an inventory adjustment period, but customers are reducing inventory and we are seeing some end markets recover,” said TSMC Chairman Deyin Liu. Sales may decline slightly this year, but we expect strong growth from next year onward.”
This forecast shows that, like the entire semiconductor industry, leading TSMC remains cautious about investing in the face of a sharp decline in consumer spending and a less-than-expected economic recovery.