Taipei [Taiwan], August 11 : Several semiconductor firms in Taiwan are approaching the third quarter with caution, despite traditionally Q3 being a high-demand period, as US tariff moves cloud the industry outlook.
As per a report by Focus Taiwan, smartphone IC designer MediaTek Inc. said the rush of orders from clients in the first half of the year, triggered by fears over US tariffs, has left little room for the usual seasonal spike in demand. "Customers front-loaded purchases to avoid potential tariffs," the company noted, warning that third-quarter revenue could fall by 7 to 13 per cent from the previous quarter, landing between NTD 130.1 billion (4.35 billion USD) and NTD 140 billion (4.68 billion USD).
The US tariff plan, announced April 2, initially proposed a steep 32 per cent duty on Taiwanese goods. The rollout was delayed twice, eventually setting a 20 per cent rate that took effect Friday. More uncertainty arrived when US President Donald Trump said on Wednesday that a 100 per cent tariff on imported semiconductors is on the table; however, manufacturers with US operations could be exempt.
Other Taiwanese chipmakers share similar worries. PixArt Imaging Inc., a sensor chip designer known for components used in computer mice, said clients had also placed large orders earlier this year but demand is now set to slow. Display driver IC maker Novatek Microelectronics Corp. reported that its customers have turned more cautious about new purchases.
The report further stated that the Taiwan dollar appreciated 10.97 per cent against the US dollar in the second quarter, ending June. The stronger currency hit export revenues and triggered foreign exchange losses for several companies. While the Taiwan dollar has eased slightly in the current quarter, it is expected to remain stronger than last quarter's average, keeping pressure on earnings.
One notable exception to the downbeat tone is Taiwan Semiconductor Manufacturing Co. (TSMC). The world's largest contract chipmaker expects robust demand for artificial intelligence applications to lift its third-quarter revenue by 8 per cent from the second quarter, based on an exchange rate of NTD 29 to one U.S. dollar. For 2025, TSMC projects 30 per cent revenue growth in U.S. dollar terms, nearly double the 15.4 per cent rise forecast for the global semiconductor industry.
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