Chipmakers cut investment plans by $9.5B on smartphone

The 10 leading global semiconductor companies are cutting capital spending from initial plans in the face of a capacity glut and weakening demand in areas such as electric vehicles and smartphones, while artificial intelligence is providing a rare source of strength, Report informs, citing Nikkei Asia.

Investment plans for each company's fiscal 2024 compiled by Nikkei show an aggregate 2% decline year over year to $123.3 billion. That represents a drop of about $9.5 billion from their estimates as of May, which had called for a 6% year-on-year increase.