Taiwan Semiconductor Manufacturing Company (TSM), the world’s largest chipmaker, has posted its first profit decline in four years as demand for consumer electronics weakens.
The microchip and semiconductor fabrication company announced second quarter revenue of 480.84 billion New Taiwan dollars ($15.68 billion U.S.), which was down 10% from a year earlier and below Wall Street expectations.
TSMC also reported net income of NT$181.8 billion versus NT$172.55 billion that was forecast, which was 23% lower than a year ago.
The latest results mark the company’s first quarterly net income decline since the second quarter of 2019.
TSMC forecast third quarter revenue of between $16.7 billion U.S. to $17.5 billion U.S., which is broadly in line with analyst forecasts.
TSMC is the top producer of the world’s most advanced microchips, semiconductors, and processors, accounting for 60% of the world’s supply.
However, the company says demand for consumer electronics remains sluggish post-pandemic.
In May of this year, TSMC’s largest customer, Apple (AAPL), reported that its overall sales fell for a second quarter in a row.
Taiwan Semiconductor’s stock has increased 19% in the last 12 months to trade at $103.06 U.S. per share.
Tech Insider
