(Boursier.com) — Taiwan Semiconductor Manufacturing Company lost 3% before the stock market on Wall Street, following the warning issued by the group. The Taiwanese chipmaker is anticipating a 10% drop in sales in 2023, after reporting a quarter-quarter drop in second-quarter profits. The economic context is weighing on the demand for chips used in applications as varied as cars, mobile phones and servers. The world’s biggest contract chipmaker has estimated capital spending for this year at the lower end of a previous range of $32 billion to $36 billion amid challenges from rising costs and an uncertain global economic outlook. TSM expects third-quarter revenue to be between $16.7 billion and $17.5 billion, up from $15.7 billion in the previous quarter. The group nevertheless benefits from robust demand for its 3 nm technology. Finally, the chipmaker is struggling with a shortage of skilled workers at its manufacturing facility in Arizona.
Taiwan Semiconductor Manufacturing Co has warned that the current boom in artificial intelligence will not be enough to offset a broader industry downturn. The key supplier ofApple And Nvidia suggests a slowdown in demand for semiconductors. Profitability is expected to deteriorate in the next quarter, with the chipmaker’s gross profit margin expected to fall to 51.5-53.5% in the third quarter from 54.1% in the second quarter, while the operating margin is expected to decline to 38-40% from 42%. Thus, the headwinds are confirmed after an exceptional year 2022. TSM is extremely cautious about increasing demand for AI-based chips. “While we have recently seen an increase in AI-related demand, this is not enough to offset the overall cyclicality of our business,” said group leader CC Wei.
For the second quarter ended June, TSM reported a 23% drop in net profit, the first year-on-year drop since the second quarter of 2019. The group saw its net profit decline to around $5.8 billion, which still beat consensus.
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