(Yicai Global) Jan. 29 -- Taiwan Semiconductor Manufacturing, Apple's primary supplier of central processing units in iPhones, has inquired if chip parts firms could slash prices due to its lower earnings expectations. 

Many TSMC's suppliers have accepted the request for a 10 percent discount in order to help the buyer get through difficult times, Taiwan-based daily newspaper Digitimes reported, citing semiconductor firms. The Hsinchu-headquartered company promised to make up by increasing orders if a rebound emerges in the second quarter.

TSMC is pessimistic about its operating revenue in the first quarter this year, expecting a sum of USD7.3 billion to USD7.4 billion, down at least 21 percent, which is far less than the USD8.5 billion it made in the first quarter of 2018. The company is expecting this year's annual revenue to grow 3 percent or less from last year.

On Jan. 2, Cupertino-based Apple diminished its revenue expectations for the first time in 16 years, blaming slowing sales in China. China and the US have been increasingly mired in trade tensions for the second part of last year, which has also caused uncertainty in the markets. 

TSMC occupies 55 percent of the market, which enables it to be successful in bargaining, semiconductor dealers said, adding that the firm's market share is expected to exceed 60 percent.

Requests for discounts of 8 percent to 10 percent involve TSMC's domestic suppliers including software and wafers, as well as foreign ones such as California's Applied Materials, Lam Research, and Netherlands-based ASML Holding.

TSMC, Samsung Electronics and Intel are the only three global dealers for chips below the size of seven nanometers, and TSMC has been one of the leaders in using extreme ultraviolet lithography technology to make these mini-chips increasingly efficient. 

Editor: Emmi Laine