2023-04-20 12:16:36
Electronic
Chip giant TSMC expects further decline in demand
The world’s largest chip contract manufacturer, TSMC, also expects reduced demand for the current quarter. photo
© Chiang Ying-Ying/AP/dpa
With customers like Apple and Nvidia, the chip manufacturer is considered an important barometer for the industry. Although TSMC has recorded a significant drop in sales, investments remain at a high level.
The world’s largest chip contract manufacturer TSMC is also assuming less demand for the current quarter. The Taiwanese group expects sales of between 15.2 billion and 16 billion US dollars (13.88 billion to 14.61 billion euros) and thus a decline of almost a tenth compared to the previous quarter, as announced on Thursday announced in Hsinchu. “We expect our business to be further impacted by inventory adjustments at our customers,” said Chief Financial Officer Wendell Huang. Profitability is also likely to fall further.
The revenue targeted for the current quarter was lower than analysts had expected on average. However, TSMC made no compromises in the investment planning for this year. In the past few days, media reports had speculated about this. TSMC chief financial officer Huang spoke of a “reasonable and prudent” budget given the retained plan of $32 billion to $36 billion in capital expenditures for this year. Demand in the first three months was also not as weak as generally feared. According to corporate planning, the decline in demand in the second quarter should slow down compared to the previous quarter.
In the first three months, TSMC posted sales of the equivalent of 16.72 billion US dollars (15.3 billion euros) – compared to the previous quarter, a drop of a good 16 percent. The bottom line is that the company, which counts tech giants such as Apple, Nvidia and AMD among its customers and is regarded as a benchmark for the electronics industry, achieved a profit of around 207 billion Taiwan dollars (6.2 billion euros) in the first three months of the year. That was around 30 percent less than in the previous quarter.
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