Taiwan Semiconductor Manufacturing Co. (TSM), the world’s largest microchip manufacturer, has reported an 8.4% year-over-year decline in its revenue for the month of December.
The Taiwanese-based company added that its revenue was down 14% in December from the previous month of November.
The December figures were released as part of the company’s preliminary fourth quarter earnings report. It is scheduled to report full Q4 earnings on Jan. 18.
Despite the sales decrease, Taiwan Semiconductor said that it is seeing demand recover as it manufactures more microchips for artificial intelligence (A.I.) models and applications.
The December figures suggest that Taiwan Semiconductor beat Wall Street forecasts in Q4, with quarterly sales of 625.5 billion Taiwanese dollars ($20.1 billion U.S.).
Analysts polled by FactSet are expecting sales of 615.8 billion Taiwanese dollars for Q4.
Taiwan Semiconductor makes the main processors inside Apple’s (AAPL) iPhones and is also the main manufacturer of A.I. chips for Nvidia (NVDA).
The company has struggled to meet soaring demand for A.I. chips in recent months but has said that it plans to double its capacity in 2024.
Taiwan Semiconductor is Asia's most valuable publicly traded company with a market capitalization of nearly $500 billion U.S.
Taiwan Semiconductor’s stock has risen 25% over the last 12 months to trade at $101.89 U.S. per share.
