Shares of Taiwan's TSMC fell more than 3% today after the world's largest contract chipmaker flagged a 10% drop in 2023 sales and said production due to start next year at its first plant in Arizona would be delayed.
TSMC yesterday reported a 23.3% fall in second-quarter net profit - its first on-year drop in quarterly profit since the second quarter of 2019 - as global economic woes take a toll on demand for chips used in everything from cars to mobile phones.
Taiwan Semiconductor Manufacturing Co Ltd's shares closed down 3.3% today.
As TSMC steps up its global expansion, the company said production at its first plant in Arizona will be delayed until 2025 due to a shortage of specialist workers.
The company's earnings of T$181.8 billion ($5.85 billion) for the quarter ended June still beat forecasts and analysts said the revision for full-year revenues was expected.
"The revenue guidance downward revision could be the last cut for TSMC as the inventory correction cycle is likely coming to an end in 4Q23, in our view, and we see TSMC well positioned for a strong growth outlook in 2024," Goldman Sachs said in a research note.
"We believe the US expansion delay is also well expected by investors."
Other analysts were also upbeat on TSMC, thanks in part to strong demand for artificial intelligence (AI), which currently contributes around 6% of revenue.
"We expect a solid 2024 onward outlook on the back of its leading position in AI chip manufacturing," Citi Research analysts said in a note.
