There are absolutely supply issues for some industries and even in some markets which currently have excess supply for the major players in those markets.
Just one example of a multitude of supply issues.
Boeing Co. is grappling with shortages of engines, semiconductors and other parts, with hiccups seemingly changing by the month and disruptions far from being resolved, executives at the US planemaker said Sunday.
www.bloomberg.com
And that's despite Boeing seeing lower demand for it's aircraft. Lower demand and Boeing is still experiencing difficulty sourcing semiconductor components for their aircraft.
WRT - NV not currently making most of their chips at TSMC, that doesn't matter.
If the PC market currently has an oversupply and PC parts suppliers are thus scaling back production of PC parts which then impacts demand for silicon used in those PC parts that means that TSMC will have less orders from major players for
future products.
Basically an oversupply of Samsung made GPUs will impact future production of TSMC fabbed parts if a major PC fabless semiconductor company were in the process of switching production from one fab to another.
That's basically the gist of TSMC's forecast warning for it's investors.
Future production is being impacted by a current glut in silicon in the PC market as well as a few other markets. It doesn't matter if that glut is due to production from another fab or their own fab. What matters is that
future capacity for companies that had booked large capacity are now in a situation where they are unable to use all of that capacity and thus TSMC will move capacity to other companies who weren't able to bid as high in order to get more capacity.
NOTE that TSMC didn't mention consoles as being a market impacted by this. That's because the console market unlike the PC market doesn't have a glut of surplus chips. AFAIK, consoles have never been grouped with the PC market, otherwise AMD's GPU share would be quite significantly higher. Consoles are likely in the "high end consumer gadget" catch all that TSMC used. That group was noted as suffering from increasing demand and thus is greatly supply constrained WRT production at TSMC. And is where capacity is being shifted to.
I'm sure both AMD and NV can shift some of their purchased wafer capacity to consoles (AMD), automotive (NV) and datacenter (both). But datacenter is noted as being steady (IE - relatively flat demand). We don't know if shortages on automotive are due to NV being unable to supply automotive partners or, far more likely IMO, other companies providing chips to auto makers who don't have the bidding clout that NV has to secure wafer starts. So, automotive may not be able to absorb a lot of NV's potentially excess fab capacity at TSMC. AMD will be able to move some of their excess GPU fab capacity to CPUs as well as console SOCs. However even with that, that may not be enough to absorb all of the wafer starts that AMD has.
Regards,
SB
