Rosenblatt analyst: TSMC and Samsung mining chip orders may drop by 50%

According to Bloomberg, Rosenblatt analyst Jun Zhang predicted in a research report that Chinese cryptocurrency mining machine companies Bitmain and Canaan Creative may cut their orders for TSMC and Samsung foundry equipment by another 50% as digital currency market prices come under pressure.

If Bitmain cuts orders, TSMC may give a more conservative third-quarter guidance on its second-quarter earnings call on July 19. The reduction in Bitmain's orders could cost TSMC up to 3% of its third-quarter revenue, mainly from its 16nm and 12nm foundry businesses. Bitmain is promoting its new ASIC chipsets at very low prices to counter competition, but research shows that it has problems combining 16nm chips with 12nm chips, and will encounter more problems when trying to add new ASIC chipsets in the future, so the company could reduce shipments.