TSMC’s revenue in March hit a 17-month low

TSMC’s revenue in March hit a 17-month low, after all, it could not withstand the weak demand side

Since the end of last year, demand in the global chip industry has continued to cool, and now even TSMC can’t stand it. On Monday (April 10), chip manufacturing giant TSMC announced its revenue report for March 2023, a 17-month low.

Consolidated revenue in March 2023 is approximately NT$145.4 billion, a decrease of 10.9% from the previous month and a decrease of 15.4% from the same period last year.

In the first quarter of 2023 (January-March), TSMC’s revenue is approximately NT$508.6 billion, a decrease of 18.68% from the previous quarter, and an increase of 3.6% over the same period last year, which is lower than analysts’ expectations of NT$512.69 billion to NT$537.25 billion. Taiwan dollar range.

The main reason for the decline in TSMC’s performance in March and the first quarter is the continued weak demand in the terminal market and further inventory adjustments by customers. At present, analysts generally believe that due to the deterioration of demand for smartphones and cloud computing, revenue this year may be comparable to that in 2022, and capital expenditure may also fall below $30 billion. In addition, analysts are also bearish on TSMC’s second-quarter performance, and the quarterly reduction estimate has been raised from the original 4% to 5-9%.

TSMC is expected to hold the first-quarter online corporate briefing on the 20th of this month, at which time it will explain in detail TSMC’s capacity utilization rate, annual outlook, gross profit margin performance, capital expenditure plan, global layout, and progress in advanced manufacturing processes. It is the focus of market attention. 

Just last week, South Korean chipmaker Samsung Electronics, a rival to TSMC, reported a dismal first-quarter report, with operating profit plunging 95% from a year earlier.

Samsung, which has always been the “head iron”, also announced a reduction in the production of memory chips, which is enough to see the global environment where demand continues to cool down.

Since the end of last year, demand in the global chip industry has continued to cool, and now even TSMC can’t stand it.
On Monday (April 10), chip manufacturing giant TSMC announced its revenue report for March 2023, a 17-month low.
Consolidated revenue in March 2023 is approximately NT$145.4 billion, a decrease of 10.9% from the previous month and a decrease of 15.4% from the same period last year.