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Chipmakers' Rout Widens After TSMC Ignites Smartphone Fears

  • The industry bellwether’s disappointing outlook spurs selloff
  • Investors fear the smartphone market’s best days are over
Bloomberg business news
Bloomberg’s Debby Wu explains why TSMC’s sales forecast is less than what analysts were expecting.(Source: Bloomberg)
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Asian technology stocks joined their peers in a global swoon after a disappointing sales outlook from Taiwan Semiconductor Manufacturing Co., Apple Inc.’s main chip supplier, rekindled concerns that the smartphone industry’s best days may be behind it.

TSMC fell 6 percent -- its biggest loss since July 2013 -- after predicting current-quarter sales about a billion dollars less than analysts had projected. It also reduced its forecast for semiconductor market growth, to 5 percent from a previous 5 to 7 percent. That followed a report by the International Monetary Fund this week saying smartphone shipments declined for the first time, a reminder that the industry may have peaked.