TSMC reported a third-quarter profit of NT$211bn on Thursday – its second consecutive quarter of declining profit - due to the persistently weak consumer electronics market.
The company still exceeded analyst expectations in both top and bottom line.
Taiwan's chipmaker is the world leader in producing the most advanced processors. However, demand for consumer electronics dropped after the pandemic.
Taiwan Semiconductor Manufacturing Company
The company reported a profit of $6.89 billion for the third quarter, despite the continued weakness in consumer electronics. The world's biggest contract chipmaker beat analyst expectations despite the fact that it was the second consecutive quarter of declining profits.
Here are TSMC’s third quarter results compared to Refinitiv consensus expectations:
546.73 billion New Taiwan dollars ($17.28 billion), vs. NT$540.39 billion expected
NT$211 Billion, compared to NT$191.43 Billion expected
TSMC's revenue fell 10.83% compared to a year earlier to NT$546.73 Billion, and its net income dropped 24.87% to NT$211 Billion. TSMC had previously stated that it expected third-quarter revenues between $16.7 billion to $17.5 billion.
TSMC's earnings report stated that "our business was supported primarily by a strong ramp-up of our industry leading 3-nanometer and higher demand for 5nanometer technologies. This was partially offset by ongoing inventory adjustments by customers."
The chip giant reported that revenues increased by 13.7% in comparison to the second quarter.
The second quarter saw a decrease in the quarterly profit of the Taiwanese company.
First time in four years
Due to the post-pandemic drop in demand for consumer electronics such as smartphones and laptops. Analysts have stated that inventories are running low at computer and smartphone makers and the demand for restocking is expected to increase.
TSMC is the leading producer of advanced processors in the world. Taiwanese company TSMC manufactures semiconductors.
You can also find out more about the following:
The majority of these are based on
TSMC manufactures 3 nanometer chips currently.
Plans to launch 2-nanometer
Mass production by 2025
Smartphone Market Recovery
According to Canalys, the global smartphone market is estimated at $ 450 billion.
Just 1% of the market fell
In the third quarter of 2023, this indicates a slowdown. In the second quarter of 2018, the market
The price of the cheapest t-shirts has dropped by 11%
Comparing the same period from a year earlier
In a report published on Tuesday, Canalys stated that the smartphone market had experienced a double-digit growth sequentially in Q3, well ahead of the holiday sales season.
Demand for AI chips has boomed due to the proliferation of large-language models like ChatGPT or Chinese clones. This has boosted the shares of TSMC which are up 19% this year.
The U.S. last week extended TSMC’s exemption from U.S. Trade Sanctions on China. This allows it to continue shipping advanced chips equipment for its operations in China.
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