A woman walks past a Taiwan Semiconductor Manufacturing Company (TSMC) logo at the Hsinchu Science Park in Hsinchu on July 5, 2023. (Photo by Sam Yeh / AFP) (Photo by SAM YEH/AFP via Getty Images)
Sam Yeh | Afp | Getty Images
Taiwan Semiconductor Manufacturing Company, the world’s largest chipmaker, experienced a significant decline in profit in the second quarter, highlighting the ongoing slump in demand for consumer electronics.
Here are TSMC’s second quarter results compared to Refinitiv consensus estimates:
- Revenue: 480.84 billion New Taiwan dollars ($15.68 billion), surpassing the expected NT$478.83 billion.
- Net income: NT$181.8 billion, higher than the expected NT$172.55 billion.
TSMC reported a 10% decline in revenue from the previous year, amounting to NT$480.84 billion, while net income fell by 23.3% to NT$181.8 billion. The company had previously projected second-quarter revenue between $15.2 billion and $16 billion.
TSMC stated that its business was affected by macroeconomic headwinds, which led to a dampening of end market demand and ongoing inventory adjustments by customers.
This marks the first quarterly decline in net income for TSMC since Q2 2019.
Is recovery on the horizon?
TSMC is the leading producer of the world’s most advanced processors, including those used in the latest iPhones, iPads, and Macs. However, the demand for consumer electronics has decreased significantly post-pandemic.
The global lockdowns during the Covid-19 pandemic resulted in a surge in demand for laptops and smartphones, leading to stockpiling of chips by smartphone and PC manufacturers. Now, these companies are grappling with excess inventories as consumers reduce their purchases due to rising inflation, causing chip prices to fall.
In May, TSMC’s largest customer, Apple, reported a consecutive decline in overall sales for the second quarter.
According to a report published by data insights provider Canalys, the global smartphone market plummeted by 11% in the second quarter compared to the previous year. However, Canalys also mentioned signs indicating a recovery in the smartphone market.
“The smartphone market is showing early signs of recovery after six consecutive quarters of decline since 2022,” said Le Xuan Chiew, an analyst at Canalys. “Smartphone inventory has started to clear up as vendors prioritize reducing inventory of older models to make room for new launches.”
This is breaking news. Please check back for updates.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
