TSMC expects Q2 sales drop as clients struggle to clear inventory

Chipmaker Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple supplier, forecast a 16% plunge in sales for the second quarter as consumers grapple with an inventory glut while a weakening global economy clouds the demand outlook.

The world’s largest contract chipmaker, TSMC, said industry inventory levels were currently higher than expected and would only “rebalance to a more healthy level” in the third quarter.