A person walks previous TSMC’s emblem on the firm’s headquarters in Hsinchu, Taiwan.
Sam Yeh | AFP | Getty Pictures
Taiwan Semiconductor Manufacturing Company reported a third-quarter revenue of 211 billion New Taiwan {dollars} ($6.69 billion) on Thursday as weak demand for client electronics persists. Whereas that was the second straight quarter of revenue declines, the world’s largest contract chipmaker bested analyst expectations.
Listed here are TSMC’s third quarter outcomes versus Refinitiv consensus estimates:
- Income: 546.73 billion New Taiwan {dollars} ($17.28 billion), vs. NT$540.39 billion anticipated
- Internet earnings: NT$211 billion, vs. NT$191.43 billion anticipated
TSMC reported income slipped 10.83% from a yr in the past to NT$546.73 billion, whereas web earnings fell 24.87% from a yr in the past to NT$211 billion. That compares with TSMC’s steering for third-quarter income between $16.7 billion and $17.5 billion.
“Our enterprise was supported by the sturdy ramp of our industry-leading 3-nanometer expertise and better demand for 5-nanometer applied sciences, partially offset by prospects’ ongoing stock adjustment,” mentioned TSMC in its earnings report.
The chip big mentioned that income elevated 13.7% within the third quarter as in comparison with the second quarter.
Within the second quarter, the Taiwanese agency reported a decline in quarterly revenue for the first time in four years because of a post-pandemic plunge within the demand for client electronics like smartphones and laptops. However analysts have mentioned inventories at smartphone and laptop makers are operating down and restocking demand is predicted to choose up.
TSMC is the highest producer of the world’s most superior processors. The Taiwanese agency manufactures semiconductors for corporations like Apple and Nvidia, which can be typically primarily based on Arm structure.
TSMC at the moment manufactures 3-nanometer chips and plans to start 2-nanometer mass manufacturing in 2025.
Smartphone market restoration
Canalys information confirmed that the worldwide smartphone market slid just 1% in third quarter 2023, pointing to a slowdown in its decline. Within the second quarter, the market plummeted 11% in contrast with the identical interval a yr in the past.
“Bolstered by regional recoveries and new product improve demand, the smartphone market recorded a double-digit sequential progress in Q3, forward of the gross sales seasons,” mentioned Canalys in a Tuesday report.
The demand for AI chips pushed has boomed led by the proliferation of huge language fashions similar to ChatGPT and Chinese language clones. That is bolstered the shares of TSMC, which have surged 19% to this point this yr..
Final week, the U.S. prolonged TSMC’s exemption from U.S. commerce sanctions on China, permitting it to proceed transport superior chip gear for its operations there.
That is breaking information. Please verify again for updates.