Taiwanese chipmaker TSMC forecast a 10% drop in 2023 sales on Thursday after reporting a 23% fall in second-quarter earnings as global economic woes dented demand for chips used in applications as varied as cars, cellphones and servers.
The world's largest contract chipmaker estimated investment spending for this year at the lower end of a previous estimate of $32-$36 billion amid challenges from rising inflationary costs and an uncertain global economic outlook.
TSMC reported a 23.3% fall in net profit to T$181.8 billion for the second quarter ended June, beating forecasts. However, it was the company's first on-year drop in quarterly profit since 2019. Revenue dropped 13.7% to $15.68 billion, in line with forecasts.
For the third quarter, TSMC expects revenue to pick up to around $16.7 billion-$17.5 billion. The chipmaker said it was grappling with a shortage of specialist workers at its Arizona fabrication plant and that N4 production would be delayed to 2025.
As a supplier to Apple and other major tech firms, TSMC faces an uncertain industry outlook and the impact of the U.S.-China chip spat. Its Taipei-listed shares fell 27.1% this year but are up around 30% year-to-date.
