TSMC expects 14% Q1 revenue drop

H2 smartphone launches could retrieve the situation but, for now “the inventory in the supply chain is quite a lot”, says TSMC chairman Mark Liu said at a post-earnings conference.

The 14% drop expected for Q1 would be the biggest since the 54% drop in Q1 2009.

For 2019, TSMC expects revenue to grow  to 1-3% compared last year’s 6.5%.

“We are tightening this year’s capital spending by several hundred million dollars to a level of between $10-$11 billion,” says CFO Lora Ho.

Q4 profit was flat at $3.24 billion while sales  rose 2% to $9.40 billion.