TSMC's Chairman Says Global Economy Prosperity Will Not be Good in the Next Year

At the end of this month's performance briefing, TSMC chairman Zhang Zhongmou, the global foundry leader, said that the overall global economic climate will not be good for the next year.

As the semiconductor boom cycle is closely linked with the global economic growth rate (GDP), the global economy is one of the important bases for the Semiconductor Industry Forecasting Model of TSMC, and it is closely related to the future operational outlook of TSMC.

Zhang Zhongmou's analysis on Wednesday evening pointed out that what Europe and the United States are currently encountering is the issue of political and economic interference. When China tries to solve the inflation dilemma, economic growth will inevitably slow down. Japan is an old problem.

"So I said that I can't see the swallows now, and the whole world can't see the swallows." Zhang Zhongmou, often referring to the "swallows coming" to describe the prospect of prosperity, said at a gala dinner in the world magazine.

Affected by the sluggish global economy and weak demand, TSMC’s September revenue decreased by 10.3% compared with the same period of last year. The third quarter was the traditional peak season, and even rarer revenue was lower than the previous quarter.

Samsung Electronics of South Korea once said last month that the semiconductor market will show a low growth rate next year due to the global economic uncertainty.

TSMC will hold a quarterly earnings briefing session at the end of this month. The market will pay close attention to Zhang Zhongmou’s claim that the new wave of semiconductor industry will decline since the financial tsunami of 2008 and 2009, and whether TSMC will significantly reduce capital expenditure next year.

Zhang Zhongmou stated in the previous quarter’s briefing that the annual growth rate of the foundry industry was revised down to 7%, and TSMC’s frankly stated that this year’s full-year growth in revenue (in US dollars) will not be achieved.

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