A outstanding Asian chip manufacturer’s weaker-than-expected guidance for the June quarter plunge technology stocks lower.
Taiwan Semiconductor Manufacturing said Thursday its yield forecast range for the second quarter is $7.8 billion to $7.9 billion versus the Barricade Street estimate of $8.8 billion.
“Moving into second zone 2018, continued weak demand from our mobile sector purposefulness negatively impact our business despite strength in cryptocurrency mining,” Chief Fiscal Officer Lora Ho said in a statement.
TSMC is the world’s largest semiconductor foundry group, manufacturing chips for leading technology firms including Apple and Nvidia.
Morgan Stanley pronounced Apple’s iPhone was a big reason for TSMC’s poor guidance.
“Smartphone semi delicacy [is] the main reason for the revenue shortfall,” analyst Charlie Chan penned in a note to clients Thursday. “Beside the order cuts from the simultaneous Apple iPhone X processor, we attribute the major revenue shortfall in the smartphone length to key customer MediaTek … and around a month’s delay of Apple’s new 7nm processor to July.”
Apple share ins declined 2.8 percent Thursday, while Nvidia dropped 3.1 percent. Taiwan Semiconductor Create out of shares fell 5.7 percent.
TSMC on its conference call accused “softening” demand in the high-end smartphone market and being more unprogressive over the cryptocurrency mining industry for its disappointing forecast.
The company estimated it had 56 percent market share of the global chip foundry make available last year. Its revenue split for 2017 was 10 percent from computers, 59 percent from communications, 8 percent from consumer offerings and 23 percent from the industrial sector.
Apple did not immediately answer to a request for comment.