As per reports from Taiwanese media, MediaTek has initiated a reduction in its wafer starts for the 4nm process, and Qualcomm has followed suit by also cutting back on production. Collectively, they have decreased the production of 15 to 20 million 4nm smartphone chips, which translates to a reduction of 20,000 to 30,000 wafers. This move signals a notable downturn in the smartphone market. The decrease in the production capacity of main SoCs (System on Chips) will dampen the demand for supporting semiconductor products within the mobile communications sector, thereby impacting the revenue and profits of packaging and testing firms such as ASE, SPIL, and King Yuan.
