Very similar revenue decline compared to TSMC year over year. More interesting to me is in their financial statement linked is that their total capacity has continued to increase even with the decline of orders.
The broad consensus in the semiconductor industry is that long term growth over the next 10 years will be far larger than what is believed to be the current short term dip. As such, everyone across all parts of the industry are increasing their capacity to prepare for that demand since they realized how much potential profits were lost due to lack of capacity during the covid times. I think that bet will turn out to be true, but I also think there will be some losers amongst the smaller companies that do not directly fab chips.
total capacity has continued to increase even with the decline of orders.
Probably funded by the CCP to build out excess capacity as a buffer against potential future sanctions.
More interesting to me is in their financial statement linked is that their total capacity has continued to increase even with the decline of orders.
Pretty much every fab across the world is in the same scenario, more lines have came online in the past year while short term demand has collapsed.
It also means they doesn’t produce any chips for Huawei. Huawei get new AI orders from Alibaba and Tencent recently.
If you looked at their financial statements their caped has increased, which makes sense their revenue has dropped. They’re putting their money into new capacity
What has capex got to do with revenue though? Revenue is how much you sold, capex is how much you invested into infra. They are not related right?