Tuesday, January 31, 2023

TSMC will have fewer semiconductor orders in 2023

Taiwan Semiconductor Manufacturing Co expects semiconductor supplies to normalize in 2023 amid declining revenue and lower demand from consumer devices and data center customers.

Taipei, Taiwan, January 18, 2023 – TSMC’s revenue is expected to decline amid a slump in chip demand, even though its fourth-quarter 2022 revenue were up. The company indicated that demand slumped and customers adjusted their inventory late last year.

As demand slumps, Taiwan Semiconductor Manufacturing Co expects revenue to decline in 2023 as semiconductor supplies normalize amid lower demand from consumer devices and data center customers.

“As customers and supply chains continue to take action, we anticipate more stable semiconductor supply chain inventories, although may decrease sharply in the first half of 2023, rebalancing to a healthy level,” CC said. Told. TSMC CEO Wei.

The company’s fourth quarter revenue was up 26.7% year-over-year and profit was up 78% year-over-year. The supply of microchips has not stagnated since the worldwide outbreak of COVID-19. The outage has affected a number of other industries, from computers to automobiles.

For example, Nissan slashed its 2022 production forecast in November, citing semiconductor shortages coupled with the COVID-19-derived lockdown in China. Nissan CEO Makoto Uchida told analysts that semiconductors were the biggest cost burden for Nissan suppliers, along with power.

As customers look to cut costs, TSMC chief financial officer Wendell Huang said last week that the company expects revenue to decline by more than 14% in the first quarter of 2023. But Apple suppliers Qualcomm, Sony and others also predict the market may be stable. Later in the year, Wei said. TSMC estimates that the semiconductor market will shrink by about 4% by 2023.

“We anticipate the semiconductor cycle bottoming out in the first half of 2023 and a good recovery in the second half of this year,” Wei said. Starting in early 2021, TSMC is investing billions of dollars to increase production capacity and reduce shortages for its customers amid disruptions caused by the pandemic. But in October 2022, the company indicated it would cut its spending plans by at least 10% as demand for chips plummeted and the global economy slowed.

The company still plans to invest billions in a second mega-plant in Arizona, which will start producing chips in 2026. President Joe Biden visited the site last December to promote his push strategy for more chip manufacturing in the US.

Nation World News Desk
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