TSMC‘s revenue hit a 17 month low in March and ultimately cannot withstand the weak demand side

Source: Cailian News Agency Author: Zhou Ziyi

    Since the end of last year, the demand for the global chip industry has continued to cool, and even TSMC cannot withstand it now.

    On Monday (April 10th), chip manufacturing giant TSMC announced its revenue report for March 2023, hitting a 17 month low.

    In March 2023, the consolidated revenue was approximately NT $145.4 billion, a decrease of 10.9% compared to the previous month and a decrease of 15.4% compared to the same period last year.

    In the first quarter of 2023 (January March), TSMC‘s revenue was approximately NT $508.6 billion, a decrease of 18.68% compared to the same period last year, and an increase of 3.6% compared to the same period last year, lower than analysts‘ expectations of the range of NT $512.69 billion to NT $537.25 billion.

    The main reason for the decline in TSMC‘s performance in March and the first quarter is the continued weakness in terminal market demand and further inventory adjustments by customers.

    Currently, analysts generally believe that due to the deteriorating demand for smartphones and cloud computing, this year‘s revenue may be comparable to 2022, and capital expenditure may also fall below $30 billion.

    In addition, analysts are also bearish on TSMC‘s performance in the second quarter, with the estimated quarterly decrease increasing from 4% to 5-9%.

    TSMC is expected to hold an online corporate briefing for the first quarter on the 20th of this month, which will provide detailed explanations on TSMC‘s capacity utilization rate, annual outlook, gross profit margin performance, capital expenditure plan, global layout, and advanced process progress, which will be the focus of market attention.

    Just last week, Samsung Electronics, a South Korean chipmaker and competitor of TSMC, released a dismal first quarter report, with operating profits plummeting by 95% year-on-year.

    Samsung, which has always been a "leader", has also announced a reduction in production of storage chips, indicating the global environment where demand continues to cool.