Taiwan Semiconductor Manufacturing Company (TSMC) ended 2022 with a fourth-quarter net income that exceeded expectations, overcoming a slowdown in the broader chip industry that’s likely to persist this year.
TSMC’s net income for the fourth quarter of 2022 jumped 78% from the same period a year ago to touch $9.43 billion (NT$295.9 billion), according to its latest financial results released Thursday.
The record net income came in higher than analysts’ forecast of $9.22 billion (NT$289.44 billion), according to Refinitiv.
Its revenues for the quarter were up 26.7% year-over-year to $19.93 billion, which was within TSMC’s projected range.
Shipments of TSMC’s 5-nanometer and 7-nanometer chips contributed 32% and 22% to the overall wafer revenue, according to the company. While 54% of the wafer revenue accounted for advanced technologies.
Despite posting estimate-beating profits, TSMC said last quarter witnessed weak demand for its wafers. “Our fourth quarter business was dampened by end market demand softness and customers’ inventory adjustment, despite the continued ramp-up for our industry-leading 5nm technologies,” said Wendell Huang, vice president and chief financial officer of TSMC.
For the first quarter of 2023, TSMC set a revenue target between $16.7 billion and $17.5 billion. Huang said the business would be further impacted by subdued demand amid a weak macroeconomic condition in the current quarter.
TSMC’s capital expenditure range for this year is expected to be between $32 billion and $36 billion, lower than the previous year.
