HomeGadgetsTSMC Defies Broader Industry Downturn, Posts 78 Percent Rise in Q4 Net...

    TSMC Defies Broader Industry Downturn, Posts 78 Percent Rise in Q4 Net Profit: All Details

    Published on

    - Advertisement -

    Taiwanese chipmaker TSMC posted a 78 percent rise in fourth-quarter net profit on Thursday, posting yet another quarterly record, as strong sales of advanced chips helped it defy a broader industry downturn that battered cheaper commodity chips.

    Taiwan Semiconductor Manufacturing (TSMC), the world’s largest contract chipmaker and a major Apple supplier, saw net profit for October-December hit a record TWD 295.9 billion (roughly Rs.79,285 crore) from TWD 166.2 billion (roughly Rs. 44,540 crore) a year earlier.

    - Advertisement -

    That compared with the TWD 289.44 billion (roughly Rs. 77,570 crore) average of 21 analyst estimates compiled by Refinitiv.

    TSMC’s business has been boosted by a global chip shortage sparked by pandemic-fuelled sales of smartphones and laptops. While the shortage has eased, analysts said dominance in making some of the world’s most advanced chips has kept the firm’s order book full.

    - Advertisement -

    Revenue for the quarter climbed 26.7 percent to $19.93 billion (roughly Rs. 5,340 crore), versus TSMC’s prior estimated range of $19.9 billion to $20.7 billion (roughly Rs. 5,545 crore).

    TSMC’s share price fell 27.1 percent in 2022, but is up 8.5 percent so far this year giving the firm a market value of $412.78 billion (roughly Rs. 33,66,055 crore). The stock rose 0.4 percent on Thursday versus a 0.1 percent fall for the benchmark index.

    - Advertisement -

    Overall, the chip sector has been grappling with weak demand for gadgets such as smartphones as inflation accelerates and interest rates rise, against a backdrop of geopolitical tension.

    In October, TSMC cut its annual investment budget by at least 10 percent for 2022 and struck a more cautious note than usual on upcoming demand, flagging challenges from rising inflationary costs and predicting a chip downturn for 2023.

    The firm said it spent $36.29 billion (roughly Rs. 2,95,940 crore) on capital expenditure in 2022, compared to a previous forecast of around $36 billon.

    TSMC, Asia’s most-valuable listed firm, whose clients include chip majors such as Qualcomm, has repeatedly said business would continue to be boosted by a “mega-trend” in the industry, brought by demand for high-performance computing chips for 5G networks and data centres, as well as increased use of chips in gadgets and vehicles.

    穢 Thomson Reuters 2023

    Affiliate links may be automatically generated – see our ethics statement for details.
    - Advertisement -

    Latest articles

    The end for this smartphone giant?

    Robert Triggs / Android Authority Good day all! Its a busy, busy day here...

    Transfer rumours: Chelsea approached Barella; Man City plot Maddison move

    90minrounds up the latesttransfer news, rumours and gossip circulating around the world...Chelsea asked Inter...

    Nothing Ear 2 Renders Leak Again, May Feature Personalised Active Noise Cancellation: Report

    Nothing Ear 2 is expected to launch as a successor to the Nothing Ear...

    More like this

    %d bloggers like this: