TSMC reports a rare year of sales contraction
Net revenue at leading foundry TSMC dipped in December resulting in 2023 annual sales that were 4.5 percent lower than in 2022.
However, this was less than the 10 percent contraction the foundry had tipped in the middle of the year (see TSMC sees headwinds, flips to 10 percent decline forecast). At that time, July 2023, CEO CC Wei had said the macro-economic climate meant that almost every sector was showing lower demand with the exception of chips for artificial intelligence.
TSMC’s revenue for December 2023 was approximately NT$176.30 billion (about US$5.68 billion), a decrease of 14.4 percent from November 2023 and a decrease of 8.4 percent from December 2022. Revenue for January through December 2023 totaled NT$2,161.74 billion (about US$69.67 billion), a decrease of 4.5 percent compared to the same period in 2022.
TSMC lowered its capital spending in 2023 but also predicted that the market contraction would be temporary and that sales would rebound in 2024 due to demand for artificial intelligence chips and its expansion in the US and Japan.
Fellow Taiwanese foundry UMC also turned in a year of contraction. UMC’s net sales in December were NT$17.0 billion (about US$547 million) down monthly sequentially by 9.6 percent and down 18.9 percent compared with December 2022.
UMC’s year-to-date sales are NT$222.5 billion (about US$7.17 billion) down 20.15 percent compared with 2022.
Related links and articles:
News articles:
TSMC’s November sales show return to downward trend
TSMC’s sales leap forward in October
September sees foundries’ lacklustre sales continue
TSMC sees headwinds, flips to 10 percent decline forecast
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