Taiwan Semiconductor Manufacturing Co (TSMC) reported a strong surge in revenue for the fourth quarter of 2019, defying expectations of a decline. The Hsinchu-based chipmaker, which counts Apple Inc and Nvidia Corp as its main customers, achieved sales of NT$176.3 billion (US$5.66 billion) in December, bringing its total sales for the quarter to NT$625.53 billion. Analysts had estimated sales to be around NT$616.2 billion.
While TSMC managed to surpass analyst estimates and its own guidance, the company still fell short of delivering growth in the fourth quarter. Moreover, sales for December were down 8.4 percent compared to the previous year, reaching the lowest level in six months. This mixed outlook for the year ahead raises concerns about the overall performance in the coming months.
It is worth noting that the semiconductor industry as a whole has shown signs of recovery, with the Semiconductor Industry Association reporting the first growth in chip sales in over a year in November 2019. This suggests that there is momentum gathering for a resurgence in the industry this year.
TSMC remains optimistic about its business prospects for 2020. The company’s executives, including CEO C.C. Wei, have expressed their expectations for overall growth. TSMC’s high-performance computing business has particularly benefited from the increasing demand for AI chips from companies like Nvidia and Advanced Micro Devices Inc.
The consumer electronics industry faced challenges last year, leading TSMC to scale back its capital expenditure plans. The company reported a 4.5 percent decline in revenue for 2019 compared to the previous year, reaching NT$2.16 trillion.
Despite the slowdown in smartphone and laptop chip sales, TSMC’s revenue surge in the fourth quarter of 2019, fueled by demand from AI firms, demonstrates the company’s ability to adapt to changing market conditions. As the semiconductor industry shows signs of recovery, TSMC remains confident about its growth trajectory for the year ahead.
The source of the article is from the blog regiozottegem.be