TAIPEI (Reuters) – Taiwanese semiconductor maker TSMC on Thursday warned of a 10% decline in annual revenue after reporting a 23% plunge in second-quarter profit amid generally weaker demand.
Capital spending for 2023 is at the low end of a previous estimate of $32 billion to $36 billion (€28.55 billion to €32.12 billion) due to challenges from rising costs and an uncertain global economic outlook, the world’s largest semiconductor maker said.
Taiwan Semiconductor Manufacturing, however, said it expects third-quarter revenue to rise to around $16.7 billion to $17.5 billion from $15.68 billion in the previous quarter, and signaled strong demand for its 3nm technology.
The manufacturer is facing a shortage of skilled workers at its manufacturing plant in Arizona, which is due to start production in 2026, while production of N4 will be delayed until 2025.
For the second quarter ended in June, TSMC, one of Apple’s main suppliers, reported a 23.3% drop in net profit to 181.8 billion Taiwan dollars (52.21 billion euros), below forecasts, although it was its first year-on-year decline since the second quarter of 2019.
Taipei-listed TSMC stock fell 27.1% in 2022 but is up around 30% year-to-date, giving the chipmaker a market capitalization of $486.5 billion.
This warning weighed on the European “tech” index on Thursday, which dropped 2.48% in early trading, the biggest drop in the Stoxx 600.
(Report Yimou Lee and Sarah Wu, written by Ben Blanchard; Augustin Turpin, edited by Kate Entringer)
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