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Chipmaker posts file revenue and robust steering


Signage for Taiwan Semiconductor Manufacturing Co. (TSMC) is displayed on the firm’s headquarters in Hsinchu, Taiwan, on Wednesday, June 5, 2019.

Ashley Pon | Bloomberg by way of Getty Pictures

TSMC, the world’s largest chipmaker, posted file internet revenue within the second quarter, serving to assuage fears over weak demand from excessive inflation and a glut of some semiconductors in the marketplace.

These are among the key numbers for the three months ended June 30:

  • Income of 534.14 billion Taiwanese {dollars} ($18.16 billion), an increase 43.5% year-on-year. That beat the 524.02 billion Taiwan greenback common from analyst estimates compiled by Refinitiv.
  • Internet revenue of 237.03 billion Taiwanese {dollars}, up 76.4% year-on-year and forward of estimates. That was a file quarter by way of internet revenue for TSMC.

The corporate which is Apple‘s most essential chip provider, stated it expects income to be between $19.8 billion and $20.6 billion within the third quarter, surging from $14.8 billion in the identical interval final yr.

Nevertheless, TSMC CEO CC Wei stated that among the firm’s capital expenditure could be “pushed out into 2023.” He cited “larger challenges within the provide chains” which is extending supply occasions for some chipmaking gear.

The robust outcomes and outlook however warning on spending highlights the cautious path chipmakers are strolling at a time of concern about rising costs and the impression on client demand, in addition to a excessive provide of chips.

Chip shares have been hammered this yr amid a myriad of worries, together with provide chain disruptions, the Russia-Ukraine struggle and rising supplies prices. Final month, U.S. chipmaker Micron warned of softening demand for consumer products.

However on the entire, TSMC’s outcomes has allayed among the worries within the chip market and significantly across the firm itself.

“I’d say that TSMC is a category of its personal, with a well-built moat,” Sze Ho Ng, analyst at China Renaissance, advised CNBC.

He stated that TSMC’s steering advised that it’s going to “proceed to develop even in a situation of the general chip market being down” year-on-year.

TSMC makes chips for different corporations and has among the most superior manufacturing processes on the earth. The corporate stated it noticed weak spot within the client market corresponding to smartphones and PCs however its information heart and automotive enterprise remained “regular.”

In the meantime, traders have been apprehensive a couple of potential chip glut available in the market. Proper now, stock ranges are fairly excessive suggesting weak demand which might put stress on semiconductor costs.

However TSMC’s Wei stated he sees stock ranges lowering and stated the present changes being made resemble a “typical cycle” for semiconductors.

“We consider the present semiconductor cycle can be extra much like a typical cycle, with just a few quarters of stock adjustment probably by the primary half 2023,” Wei stated.



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