Semiconductor equipment makers worry that customer capital expenditures are not as expected

Semiconductor equipment makers reported that foundry companies were affected by customer inventory adjustments, production capacity was loosened, 12-inch plant expansion was slowed down, and the pace of capital expenditures in the first half of the year was not as expected. TSMC fears to reduce its annual capital expenditure from US$7.8 billion to 70. Billion U.S. dollars, the rate of repair is 10%, UMC may follow suit. The downstream makers of Taihang Riyouguang Electronics Co., Ltd. and silicon products will also be affected, which will add to the shadow of the electronics industry in the second half of the year.

TSMC spokesman Sun Youwen did not want to comment on whether or not TSMC had made any capital expenditures this year. She stressed that the relevant issues will be explained on the July 28th law. UMC admits to slow down the expansion of the 12-inch plant, but We do not plan to underwrite the annual capital expenditure of US$1.8 billion (approximately NT$52.2 billion).

Taiwan Semiconductor Manufacturing Co., Ltd. set a law talks meeting on the 28th of this month, UMC tentatively scheduled to be held in early August, when the capital expenditures of the two major plants will become the focus of the market. At the end of last month, TSMC and UMC attended a legal briefing organized by UBS Securities. Although the second quarter operating estimate has not yet been revised, and the changes in capital expenditure this year have not been commented on, the demand for semiconductor terminals is admittedly far below. Originally expected.

Equipment makers reported that the amount of equipment orders released by TSMC in the second quarter of this year was only US$618 million (approximately NT$17.9 billion), a 57% decrease in the quarter, and total equipment expenditure in the first half of the year was US$2.2 billion (approximately NT$63.8 billion). Only the planned target of 5.3 billion U.S. dollars.