TSMC 2019 capex forecast to fall by 2%
Taipei, Nov. 30 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, is expected to cut capital expenditure by about 2 percent in 2019, according to U.S.-based market advisory firm IC Insights.
In a research note dated Thursday, IC Insights said TSMC's capex for 2019 could hit US$10 billion, down 2 percent from a year earlier.
IC Insights did not detail why TSMC will spend less in 2019, but it was not alone with the top five capex integrated circuit spenders all forecast to lower capex next year.
TSMC is expected to be the third highest capex spender in the global semiconductor industry in 2019.
Samsung Electronics Co. of South Korea is likely to remain in first place, with capex US$18 billion, but the company's expenses are expected to fall 20 percent from a year earlier in the wake of a memory chip market hit by supply glut, IC Insights said.
U.S.-based Intel Corp. is expected to spend US$13.5 billion in capex in 2019, down 13 percent, to remain second, ahead of South Korea's SK Hynix Inc., where capex is expected to fall 22 percent to US$10 billion, tied with TSMC, the advisory firm said.
Hynix is also affected by a slower dynamic random access memory (DRAM) chip market, IC Insights said.
Micron Technology Inc., an American DRAM maker, is expected to cut capex by 5 percent from a year earlier to US$9.5 billion in 2019, the fifth highest, IC Insights added.
The top five IC firms are forecast to assign capital expenditure of US$61 billion in 2019, down 14 percent from a year earlier, the research note said.
Outside the top five, other IC firms are expected to spend a combined US$33.59 billion in capex, down 7 percent from a year earlier, a smaller fall than for the top five, IC Insights said.
The capex of the global IC industry is expected to hit US$94.59 billion in 2019, down 12 percent from a year earlier, IC Insights added.
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