TSMC Cuts Spending Budget Again Amid Semiconductor Slowdown

Taiwan Semiconductor Manufacturing Co. cut its equipment budget amid a slowdown in global demand that led to its first profit decline in three years.

Capital expenditure will be $8 billion for the year, Chief Financial Officer Lora Ho, told investors Thursday. In July, the company had forecast capex of $10.5 billion to $11 billion, saying at the time it may adjust the figure in future.

TSMC’s second cut in spending comes after Intel Corp. this week lowered its own spending outlook and said a slowdown in server demand could threaten sales of its chips. ASML NV, Europe’s largest semiconductor-equipment maker, Wednesday forecast revenue below estimates as customers delayed machine orders.

Spending for the year through Sept. 30 totaled $5.5 billion, TSMC said in a statement Thursday.

Before it's here, it's on the Bloomberg Terminal.