Electronics: Chip manufacturer TSMC misses sales expectations

electronics
Chip manufacturer TSMC misses sales expectations

The world’s largest chip contract manufacturer TSMC did less business in the final quarter than experts had expected. photo

© Chiang Ying-Ying/AP/dpa

Chips have been in demand like never before since Corona. Production has ramped up worldwide. But the world’s largest contract manufacturer and Apple supplier disappointed investors. A signal that the market is cooling down?

The world’s largest chip contract manufacturer TSMC did less business in the final quarter than experts had expected. The company achieved revenue of 625.5 billion Taiwan dollars (19.1 billion euros), 43 percent more than a year earlier. Analysts had expected an average of 636 billion Taiwan dollars in sales. The exclusive supplier of Apple’s iPhone and Mac silicon chips missed the estimates of experts for the first time in more than two years.

Despite the strong growth, this could be a signal that the chip giant could also be noticeably affected by the slowdown in the industry. Like other manufacturers during the pandemic, TSMC increased production capacities, also because electronic semiconductors were in short supply. However, with Russia’s war against Ukraine and higher inflation, the global economy is now threatening to grow much more slowly. Consumers have restricted their spending on electronic devices.

Final quarter revenue was in line with what TSMC had set for itself. The plan was 19.9 billion to 20.7 billion US dollars. The equivalent of 20.5 billion was reached. In the chip industry, billing is usually done in US dollars.

dpa

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