Taiwan Semiconductor Manufacturing Co (TSMC) forecast business to stabilise in the current quarter as global demand slows, after booking profit and revenue gains in Q3.
CFO Wendell Huang noted in a brief statement TSMC expects business would be broadly flat in the current quarter, citing weakening demand and inventory adjustments by customers being offset by acceleration in its 5nm products.
Shipments of 5nm chips accounted for 28 per cent of total wafer revenue during Q3, with 7nm generating 26 per cent.
Net profit grew 79.7 per cent year-on-year to TWD280.9 billion ($8.8 billion) and revenue increased 47.9 per cent to TWD613.1 trillion.
TSMC forecast revenue of between $19.9 billion and $20.7 billion for the current quarter, with gross profit margin in the range of 59.5 per cent and 61.5 per cent compared with 60.4 per cent in Q3.
In July, Bloomberg reported the company raised its full year revenue forecast from 30 per cent to the mid-30 per cent range.
With demand for chips falling, analysts expect TSMC to cut back on its aggressive 2022 capex target: it originally earmarked $40 billion to $44 billion compared with $30.4 billion in 2021.
Last week, Samsung Electronics forecast a drop in Q3 operating profit and slowing sales growth.
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