Published , by Donovan Erskine
Published , by Donovan Erskine
Taiwan Semiconductor (TSM), one of the world’s biggest chip manufacturers, has shared its earnings report for the first quarter of 2023. In the report, we see that the company beat expectations regarding earnings. However, the company foresees a dip in sales in Q2, and has lowered its guidance as a result.
The Q1 2023 press release for Taiwan Semiconductor (TSM) was shared today and chronicles the company’s financial performance over the latest quarter. The chip manufacturer reported $16.72 billion in revenue for Q1, which comes just under the $17 billion revenue estimate. Its earnings per share were $1.31, which beat the whisper number.
On the first page of the report, Taiwan Semi shares that it's predicting between $15.2 and $16 billion for its Q2 revenue, a drop from what it made in the first quarter. The company noted the changing global economy and how it impacted the first quarter numbers, and it’s expecting the same for Q2. "Moving into second quarter 2023, we expect our business to continue to be impacted by customers' further inventory adjustment," said CFO Wendell Huang on the Q2 2023 earnings call, which we caught from Reuters.
Taiwan Semi produces chips for a number of tech companies, most notably, Apple. The company’s lowered guidance is likely related to what it forecasts Apple’s sales will look like over the next few months. It’s also worth noting that the chip manufacturer expects its business to pick back up in Q3 after a down Q2.
With Taiwan Semiconductor lowering its guidance for Q2, we’re curious to see how some of its top clients perform during that period. For more on Taiwan Semi and other market news as it relates to the tech industry, stick with Shacknews.