TSMC’s revenues could crash, dropping almost 30 percent

Taiwanese chipmaker TSMC is expected to report an almost 30 percent drop in second-quarter net profit as global economic woes reduce demand for semiconductors, but analysts say business performance may improve in the current quarter.

TSMC prepares for decline

Taiwan Semiconductor Manufacturing (TSMC), the world’s largest contract chip manufacturer and one of the important suppliers of Apple and Nvidia, is expected to experience a 27 percent decrease in profit level in the financial report for the April-June period to be announced in the coming days. It is stated that the company will make a net profit of $5.58 billion in the second quarter of the year, compared to $7.65 billion in the same period of the previous year.

Analysts say the drop will mean a bottom for TSMC, but the outlook will improve with the third quarter. Traditionally, however, the second quarter has been a stagnant period for the technology sector. A statement confirming this came from TSMC last month. The company stated that the rapidly increasing demand for artificial intelligence applications led to a large number of orders and they would outperform the first half in the second half. TSMC will release its official financial report on Thursday. TSMC’s second-quarter revenue will be $15.53 billion, according to Reuters’ calculations.