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A woman walks past the logo of Taiwan Semiconductor Manufacturing Company (TSMC) 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 Industry CorporationInc., the world’s largest chipmaker, reported second-quarter profits Thursday as demand for consumer electronics continued to decline.
Here are TSMC’s second-quarter results versus Refinitiv consensus estimates:
- he won: 480.84 billion The new Taiwan dollar ($15.68 billion) vs. the expected 478.83 billion Taiwan dollars
- net income: NT$181.8 billion vs. NT$172.55 billion expected
TSMC reported that revenue fell 10% from a year ago to NT$480.84 billion, while net income fell 23.3% from a year ago to NT$181.8 billion. The company had previously forecast second-quarter revenue of between $15.2 billion and $16 billion.
TSMC said The business was affected by macroeconomic headwinds “which reduced final market demand, and led to continuous inventory adjustment for customers.”
This is the company’s first quarterly decline in net income since the second quarter of 2019.
Recovery is underway?
TSMC is the world’s largest producer of the most advanced processors, including the chips in the latest iPhones, iPads and Macs. But consumer electronics demand fell after the pandemic.
Global demand for laptops and smartphones has soared during the Covid-19 lockdowns, prompting smartphone and PC makers to stockpile chips. Now these companies are grappling with excess inventories as consumers cut back on their purchases of these goods due to rising inflation. This has led to lower chip prices.
In May, Apple, TSMC’s largest customer, reported Total sales fell for the second straight quarter.
global smartphone market It fell 11% in the second quarter compared to last year, according to a report published on Tuesday by data analytics provider Canalys.
But Canalys said there are signs that the smartphone market is recovering.
“The smartphone market is sending early signs of recovery after six consecutive quarters of decline since 2022,” said Lu Xuanqiu, an analyst at Canalys. “Smartphone inventory has begun to clear up as smartphone vendors have prioritized reducing inventory of older models to make room for new launches.”
This is breaking news. . Please check back for updates
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