Taiwanese chipmaker TSMC reported a 19% drop in fourth-quarter net profit on Thursday but still outperformed expectations.
Taiwanese chipmaker TSMC (2330.TW), which opened a new tab, reported a 19% reduction in fourth-quarter net profit on Thursday as global economic difficulties impacted demand for semiconductors used in applications ranging from cars to cellphones and servers, but still outperformed market expectations.
Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), the world’s largest contract chipmaker and a major Apple Inc. (AAPL.O) and Nvidia Inc. (NVDA.O) supplier, saw its net profit fall to T$238.7 billion ($7.6 billion) in October-December from a particularly strong T$295.9 billion the previous year.
The result exceeded the T$226.4 billion LSEG SmartEstimate, which is weighted towards projections from more consistently accurate analysts.
TSMC said that capital expenditure in the fourth quarter was $5.24 billion, compared to $7.1 billion in the third quarter.
Capital spending for the year totaled $30.45 billion, which was less than the previous expectation of $32 billion for 2023 and $36.29 billion spent in 2022.
As the world’s largest manufacturer of sophisticated chips, TSMC must negotiate an unclear market picture and a U.S.-China semiconductor spat that might expose it.
TSMC’s Taipei-listed shares rose 32% last year. The stock jumped 1.2% on Thursday ahead of the results, compared to a 0.4% gain for the benchmark index (.TWII), giving the business a market capitalization of $478.3 billion.
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