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Weak foundry sales spell trouble for tech industry

Posted: 13 Jul 2015 ?? ?Print Version ?Bookmark and Share

Keywords:foundry? semiconductor industry? chip?

A worsening outlook for the foundries would likely have a negative impact on suppliers of equipment and materials. TSMC earlier this year slashed its planned capital expenditure for 2015 by about $1 billion. Intel this year also pared about $1.3 billion from its 2015 capex budget.

Bad news for some may be good news for others. The customers of TSMC and UMC may gain more power to bargain for lower prices as the two foundries seek to shore up slipping capacity utilisation, which is important to maintaining profitability in their capital-intensive business.

It may be a bit too early to say what will happen in the second half of this year. We're likely to learn more when TSMC and UMC announce their quarterly results later this month.

- Alan Patterson
??EE Times U.S.

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