More than four analysts published reports saying a stronger US dollar may weaken smartphone chip demand.
Analysts at HSBC Holdings and Citigroup said that TSMC sales of chips might not be as strong as it had expected as demand and mobile device demand will soften.

MayBank Kim Eng Group and Credit Suisse also predicted the global chip foundry industry will miss TSMC's forecast for 12 percent growth.

US Dollar

"Based upon the strengthening of the US dollar against many other currencies, which creates weakening purchasing power, there is a chance we will have to adjust down that 12 percent rate," Elizabeth Sun, TSMC's head of investor relations, told Bloomberg News.

TSMC gave that foundry growth forecast at its January 15 investor conference, saying at the time "we are confident we can outperform the foundry revenue growth by several percentage points in 2015."

It should be doing well, if Apple and Qualcomm who it makes chips for also do well, however if they aren't then it is in trouble. HSBC said that while Apple must be brilliant, because it is Apple, TSMC was its dependant on a few customers, which could offset potential gains it makes from Jobs' Mob.

China smartphone unit growth is predicted to climb only 12 percent this year, from a previous 21 percent forecast. Meanwhile sharp declines in currencies against the US dollar will hurt demand in Western Europe and Latin America.

Citigroup cut its full-year global smartphone growth forecast to 15.5 percent from 19 percent.

Smartphone

That smartphone downgrade and Samsung's cunning plan to use its own chips, instead of those from Qualcomm, prompted Citigroup to downgrade the Taiwanese company for the first time since at least October 2011, according to a report published yesterday. It now rates the stock neutral.