Supply chain
Highlights of the day: TSMC 2019 capex expected to reach US$12.5 billion

TSMC expects it 2019 capex to exceed the high end of its previous guidance range of US$10 billion to US$11 billion, as the pure-play foundry steps up efforts to expand its 7nm process capacity and develop a newer 5nm node ready for new customer designs in 2020. Industry sources say TSMC's capex for the year is likely to reach US$12.5 billion, judging from the need to satisfy robust chip demand in the 5G era. Samsung, another major player in the foundry sector, may be trailing behind TSMC, but the Korean giant has recnetly made gains in the China market by winning chip orders from smartphone vendor Vivo, thanks to the US trade ban on Huawei. But the 5G chip market is becoming very comeptitive, with prices already seeing a lot of downward pressure.

TSMC capex likely to reach US$12.5 billion: Taiwan Semiconductor Manufacturing Company (TSMC) is expected to see its capex this year reach around US$12.5 billion to satisfy robust chip demand in the 5G era, according to industry sources.

Samsung reportedly lands 5G AP, baseband chip orders from Vivo: Samsung Electronics has taken a two-pronged approach to boost sales of its products, including 5G application processors (APs), 5G baseband chips and mid-range smartphones, in China, according to industry sources.

5G chipset solution prices likely to drop significantly in 2H19: Chipset suppliers, including Qualcomm, MediaTek and Unisoc Technologies, are facing increasing pressure to slash prices of their 5G solutions in order to make a preemptive presence in the segment, according to industry sources.

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