Taiwan Semiconductor Manufacturing Co (TSMC) has lowered its revenue outlook for the current quarter and full-year 2023 as demand slumps in its end-use markets like smartphones.
A mixed bag of results saw Apple’s key chipmaker deliver first-quarter earnings ahead of expectations, with net income of NT$206.9 billion ($6.8 billion) for the March quarter, compared with the NT$194.2 billion analysts projected on average.
Shares were higher in premarket trading in New York on Thursday, up 1.6%.
But it is the coming quarters that are giving investors pause.
For its second quarter, TSMC expects revenue of $15.2 to $16 billion, versus the $16.1 billion figure that analysts were expecting.
Its first-half, revenue is anticipated to drop nearly 10% in US dollar terms year-over-year, TSMC said, while 2023 revenue is expected to fall by a low-to-mid single-digit percent.
Headquartered in Taiwan, TSMC is one of the world's largest and most advanced semiconductor foundries, specializing in the manufacturing of integrated circuits (ICs) and other semiconductor products.
TSMC has a global customer base and works with many of the world's leading technology companies, including Apple, AMD, Nvidia, and Qualcomm.
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