The world's largest wafer foundry and major Apple supplier TSMC has lowered its full-year revenue target to the low end of its previous forecast range.
'Apple accounts for nearly 20% of TSMC's revenue, so its financials may point to the iPhone's demand is not as expected,' Atlantic Cords analyst James Cordwell told Reuters.
Others (some people ask not to quote) are frankly saying that this is 'completely' about Apple's warning.
Mizuho Securities in the customer report pointed out that its visit continued to show weak demand for iPhone X, while iPhone 8 and 8 Plus's orders steadily declined. iPhone X is Apple's 10-year version released in November last year.
Apple shares tumbled 2.83% on Thursday, posing a serious drag on the Nasdaq index.
Shares of Apple suppliers such as Qualcomm (QCOM.O), Intel (INTC.O), Qorvo Inc (QRVO.O), Skyworks Solutions Inc (SWKS.O) and Broadcom (AVGO.O) fell 2.6% to more than 5% Ranging from.
Elazar Advisors analyst Chaim Siegel said, 'We may not start driving the third quarter of the production chain until the fall of the new iPhone. Until then, the mobile phone industry will be weak.'
Qualcomm and Nvidia (NVDA.O) supplier TSMC said that the overall semiconductor industry is expected to grow by 5% this year, which is lower than the previous estimate of 5-7%.
Data provider TrendForce had previously estimated that the global smartphone production in 2018 was about 1.5 billion units, an increase of 2.8% from the previous year but lower than the previous estimate of 5%.
TSMC estimated on Thursday that chip foundry (wafer foundry) business grew 8%, previously estimated at 9-10%.
TSMC's ADR (TSM.N) closed down 5.7%, other chip equipment manufacturers such as Applied Materials (AMAT.O) and Lam Research (LRCX.O) Both fell more than 6% while ASML (ASML.AS) fell more than 5%.
Chip makers—ADIN (ADI.O), Micron Technology (MU.O) and Xilinx (XLNX.O) fell more than 4% each.