TSMC’s Taipei-listed shares slide 6% on global chip outlook concerns

TAIPEI :Taipei-listed shares of TSMC fell greater than 6 per cent on Friday following the corporate’s first-quarter earnings document where it retained its capex and complete-year revenue steering and flagged most productive a late recovery for the chip sector.

Taiwan Semiconductor Manufacturing Co (TSMC), the world’s greatest contract chipmaker and a predominant Apple and Nvidia seller, forecast on Thursday 2nd-quarter gross sales can also just upward push as a lot as 30 per cent as it rides a wave of quiz for semiconductors extinct in man made intelligence (AI) beneficial properties. Its first-quarter revenue moreover beat estimates.

Nevertheless it completely left its capital spending plans for this year unchanged at between $28 billion and $32 billion and reiterated it expected 2024 revenue to upward push in the low- to mid-20 per cent differ in U.S. dollar terms.

It moreover lowered its outlook for the global semiconductor commerce excluding reminiscence to a boost fee of round 10 per cent from a previous forecast of greater than 10 per cent.

Furthermore, the corporate downgraded the boost forecast for the global foundry sector to mid-to-high younger other folks percent from a previous projection of round 20 per cent.

Allen Huang, Vice President of Mega World Funding in Taipei, talked about the market used to be reacting to the revision in its global outlook for the semiconductor commerce, and expectations TSMC would extend its capital expenditure this year for prime-waste packaging.

“If capital expenditure used to be most productive maintained at the previous stage, it manner that revenue isn’t as expected,” he talked about.

One more Taiwan fund manager, who requested to not be known, talked about given TSMC’s most up-to-date stock rally merchants had high expectations heading into its first quarter earnings.

“Its capex has not been so aggressive, and the share of developed process technologies revenue in contrast to total revenue is silent shiny low,” the manager talked about.

Analysts at J.P. Morgan notorious of their list of “key negatives” from the earnings the slower recovery in logic semiconductor quiz for 2024, now 10 per cent boost in contrast with 10 per cent- plus boost guided in January as a end result of the late recovery in smartphones, computers, non-AI servers and a decline in auto quiz.

The broader Taipei market used to be down greater than 3.5 per cent on Friday morning.