Taiwan chip giant TSMC cuts global smartphone outlook, sees weaker high-end demand

Good forecast: Taiwan Semiconductor Manufacturing Co expects a third-quarter pick-up as customers stock up on chips for new launches in time for the year-end holiday season. — Reuters

TAIPEI: Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker and an Apple Inc supplier, cut its estimate for 2016 global smartphone shipments for the second time this year as slowing demand for high-end handsets gnaws away at a major driver of tech sector growth.

The lowered smartphone growth forecast came as TSMC, an industry bellwether, said it would raise capital spending this year in a bet on next-generation chips, comforted by hopes for a traditional third-quarter pickup as customers stock up on chips for new launches in time for the year-end holiday season.