Leading chipmaker predicts drop in crypto mining activity

The world’s largest independent chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), has predicted that demand from the crypto mining community will drop in Q4 2018.

Though the firm’s growth target sat at between 7 and 9 per cent, that has now reduced to 6.5 per cent, reportedly because of less interest from those the crypto space.

The firm said in an earnings call: “Moving into fourth quarter, despite the current market uncertainties, our business will benefit from the continuous steepramp of 7-nanometer for several high-end smartphones as well as the demand for 16/12-nanometer for the launches of new-generation GPU and AI. However, this growth will be partially offset by continued weakness in cryptocurrency mining demand and inventory management by our customers.”

The prediction could simply be a sign of uncertainty in the market’s future, rather than evidence that crypto miners are actually slowing down as 2018 comes to a close.

The report does, however, point to changes in the market and demand in various areas.

“Our business is also negatively impacted by further weakening of cryptocurrency mining demand,” the CEO continued during the call. “As a result, we estimate our 2018 growth rate will be about 6.5 per cent in US dollar terms, which is cose to the foundtry industry’s growth but slightly below our 7 per cent to 9 per cent guidance given in the last conference.”