Lower TSMC 5nm chip production isn’t from low iPhone 12 demand, says Ming-Chi Kuo

The market shouldn’t pay too much attention to how much of TSMC’s 5nm production is utilized by Apple, TF Securities analyst Ming-Chi Kuo suggests, with changes in production likely to be more due to seasonality than unexpectedly low iPhone 12 demand.Shifts in share prices of Apple’s suppliers have taken place based on the suggestion that Apple’s A14 SoC production will be utilizing approximately 80% of TSMC’s 5-nanometer capacity in the first quarter of 2021, lower than the 100% utilization level for Q4 2020. It is thought that this utilization drop represents a reduction of demand for the iPhone 12 series, in turn forcing Apple to cut orders from the chip foundry.In a note to investors from TF Securities seen by AppleInsider, Ming-Chi Kuo writes it would be “an overly optimistic erroneous expectation” to believe the utilization in Q1 2020 would be the same 100% as in the fourth quarter. “If the stock price correction was due to wrong expectations, it would likely benefit from the recent rebound,” Kuo suggests.Read more…
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