TSMC sales dip in December

TSMC sales dip in December

Business news |
By Peter Clarke

Foundry TSMC’s December sales fell 13.5 percent sequentially to NT$192.56 billion (about US$6.3 billion) but were still up 23.9 percent compared with a year before.

The sales growth figure was down from 50-plus percent recorded by TSMC in November and October suggesting that the world’s largest pure-play foundry is starting to feel the decline in electronics demand that has already hit many chip companies.

The December sales meant TSMC’s 4Q22 revenue was NT$625.53 billion (about US$20.5 billion). This was within the range of $19.9 billion to $20.7 billion forecast by TSMC at the time of presenting its 3Q22 financial results. The December sales were below the predictions of some analysts.

However, for the full year of 2022 TSMC achieved sales of NT2,263 billion (about US$74.35 billion), which was a phenomenal jump of 42.6 percent compared with 2021 sales revenue. This is mainly due to the strong demand for, and price strength, of TSMC’s leading-edge manufacturing processes at 7nm and 5nm.

TSMC has likely continued to maintain high manufacturing capacity utilization rates at the expense of its rival Samsung.

Further behind the leading edge foundry United Microelectronics Corp. saw its December sales fall sequentially by 7.1 percent to NT$20.95 billion (about US$688 million). This was an increase of 3.3 percent on December 2021. UMC’s full year sales were NT$278.71 billion (about US$9.15 billion) up 30.8 percent year-on-year.

Related links and articles:

News articles:

TSMC’s sales growth stays high as UMC’s dips

TSMC’s October sales leap forward

Chip market crash arrives – worse than expected

Report: TSMC takes action in response to falling demand

Foundries defy chipmarket downturn

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