Taiwan Semiconductor Manufacturing Co (TSMC) has defied analysts’ expectations by posting better-than-expected sales in the final quarter of 2023, signaling a potential easing of the global slump in the chip market. Despite reporting a drop in revenues, TSMC’s sales figures exceeded predictions, providing hope for the semiconductor industry.
TSMC, widely known for producing microchips used in nearly all electronic devices, disclosed sales worth NT$ 176.3 billion ($5.7 billion) for December 2023, representing an 8.4% decrease compared to the same period in the previous year. However, the company’s sales in the fourth quarter reached NT$ 625.5 billion, surpassing expectations, and its full-year sales for 2023 amounted to NT$ 2.16 trillion, marking a 4.5% drop from the previous year.
Shares in TSMC, which is headquartered in Hsinchu, remained relatively steady after a 21% increase over the past 12 months. Analysts had predicted that TSMC would generate only NT$ 615.8 billion in the fourth quarter of 2023, highlighting the challenging global semiconductor market conditions caused by sluggish consumer demand for laptops and mobile phones.
The better-than-expected sales from TSMC have raised optimism that the recent downturn in the semiconductor industry may be coming to an end. This positive performance showcases TSMC’s resilience and ability to adapt to market challenges.
While the chip market experienced a tough period, TSMC’s ability to exceed expectations is seen as a positive sign for the industry as a whole. The company’s impressive sales figures suggest a potential turnaround in the market, with a cautious but optimistic outlook for the future.
