Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) shares dropped 1.8% after the company warned that first-quarter revenue would be at the lower end of its forecast due to a $161 million hit from a January earthquake in Taiwan.
The world’s largest contract chipmaker, which supplies Apple and Nvidia, said the quake led to wafer losses but did not cause structural damage to its factories.
TSMC had projected Q1 revenue between $25 billion and $25.8 billion but now expects figures closer to the lower end of that range.
Despite the setback, production is back to normal, and the company says its full-year outlook remains unchanged. It is working to recover lost output and minimize further disruptions.