TSMC denies lowering revenue forecast, The first EUV equipment has been installed in the US factory
In July of this year, TSMC, upon announcing its Q2 results, expressed concerns driven by the overarching global economic climate. With a languid demand in end markets and supply chain issues protracting beyond initial estimations, the corporation undertook its second revenue forecast revision for the year, projecting a 10% decline for 2023.
According to Wccftech, amidst the semiconductor industry’s decelerated growth and pervasive challenges, rumors abound suggesting TSMC might once again adjust its revenue outlook, potentially steepening the decline to 12%. However, TSMC refuted these speculations, asserting their commitment to the previous estimates.
In truth, the securities market doesn’t radiate unabated confidence in TSMC’s performance. Recent trends in the company’s stock price are notably tepid, and many conjectures that in an environment of subdued demand, low inventory turnover, and escalating overall costs, a decline in TSMC’s free cash flow might compromise its dividend payouts. Moreover, there’s industry chatter indicating that TSMC has discreetly been discounting prices since July, particularly for analog IC chips associated with 8-inch wafer fabrication, with reductions ranging between 10% to 20% and peaking at 30%, which undoubtedly casts a shadow over its financials.
Nevertheless, TSMC maintains its vanguard position in cutting-edge processes, and demand in this segment remains relatively steadfast, accounting for a substantial portion of its revenue. Some analysts posit that TSMC’s performance in the latter half of the year will surpass its prior semester, primarily buoyed by Apple’s new product orders and the fervent sales of NVIDIA’s AI-centric data center products.
Due to a dearth of skilled personnel required for the installation of semiconductor equipment, the large-scale production timeline for the Fab21 facility in Arizona, USA, has been deferred to 2025, roughly a year behind the original schedule. Yet, sources intimate that the initial phase of the facility has begun the integration of its maiden EUV equipment. TSMC is keen on augmenting its workforce in the US, aiding Fab21 with the installation of production tools and overseeing mechanical and electrical systems, thereby accelerating the construction timeline.
