Apple, Nvidia Supplier TSMC Records 19% Q4 Profit Drop But Exceeds Market Expectations
The world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM), experienced a 19% decrease in its fourth-quarter net profit, largely due to the global economic downturn affecting chip demand. Despite this, the company’s performance exceeded market predictions.
What Happened: TSMC’s net profit for the October-December period fell to T$238.7 billion ($7.6 billion) from T$295.9 billion a year earlier, reported Reuters on Thursday. This drop, however, was less severe than the T$226.4 billion LSEG SmartEstimate, which is weighted towards forecasts from consistently accurate analysts.
Despite the decline, TSMC’s fourth-quarter revenue only slipped 1.5% year-on-year to $19.62 billion, in line with the company’s previous forecast of $18.8 billion to $19.6 billion. The company’s capital expenditure in the fourth quarter was $5.24 billion, down from $7.1 billion in the third quarter.
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