TSMC's revenue was NT$218.70 billion, about $7.1 billion, at the top of revised guidance but considerably down from the original guidance of $7.3 to $7.4 billion given along with the companies end of 2018 results. Year-over-year, first quarter revenue decreased 11.8 percent in NTD but was down 16.1 percent in dollar terms.
The foundry's net income was NT$61.39 billion, down by a third compared with the same quarter a year before.
TSMC said it expects 2Q19 revenue of between $7.55 billion and $7.65 billion. At the mid-point this would be down about 3.2 percent from $7.85 billion revenue the company reported for 2Q18.
Shipments of 7nm wafers accounted for 22 percent of total wafer revenue; 10nm process technology contributed 4 percent and 16nm accounted for 16 percent. Thus, so-called advanced technologies – defined as 16nm and below – accounted for 42 percent of total wafer revenue.
"In the first quarter, our business was impacted by the overall global economic condition which dampened the end market demand; customer inventory management to digest excess inventory in the semiconductor supply chain; and high-end mobile product seasonality," said Lora Ho, CFO of TSMC, in a statement. She added that an incident over defective photoresist material impacted the first quarter revenue by 3.5 percent (see TSMC hit for $550 million by sub-standard photoresist ).
Ho said that the company may have passed the bottom of the cycle of the company's business and that demand was not stabilizing.
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