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Taiwan Semiconductor Seeing Slower Order Flow

The Digitimes reported Monday that Taiwan Semiconductor Manufacturing Company is seeing a slow-down of its order pace. Companies like Qualcomm (NASDAQ: QCOM) Broadcom, and OmniVision are cutting orders as the demand for PCs and high-end smartphones continues to weaken.

Sales of smartphones, even high-end ones, reportedly have been disappointing, while demand for PCs remains sluggish, the observers indicated. Many brand vendors and contract manufacturers have cut their shipment forecasts for 2013, the observers said.

However, the company reports that chips built on its 28nm low-power high-k metal gates (HPL) process continued to grow. This technology is targeted towards mobile phones, portable consumer electronics, and wireless communication devices.

Other reports show that the mobile phone industry isn’t slowing, it’s changing. Worldwide demand for lower cost, budged-minded phones is taking over as consumers become more frugal in a challenging economy.

To meet that demand, Apple (NASDAQ: AAPL) is rumored to be producing a low-cost iPhone while premium phone manufacturer, Samsung, is dabbling in the space as well. Nokia (NYSE: NOK) recently introduced a $68 phone to meet the needs of the budget-minded consumer.

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Disclosure: At the time of this writing, the author had no position in the companies mentioned.

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