_0.jpg?itok=k-nZapnS "Shanmugam, Balakrishnan take the stand in hearing to determine damages against Lee Hsien Yang over defamatory Ridout Road post")
(Corrects day of week in paragraph 2 to Thursday, not Wednesday)
TAIPEI :Taipei-listed shares of TSMC fell around 6 per cent on Friday following the company’s first-quarter earnings report where it retained its capex and full-year revenue guidance and flagged only a gradual recovery for the chip sector.
Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker and a major Apple and Nvidia supplier, forecast on Thursday second-quarter sales may rise as much as 30 per cent as it rides a wave of demand for semiconductors used in artificial intelligence (AI) applications. Its first-quarter profit also beat estimates.
But it left its capital spending plans for this year unchanged at between $28 billion and $32 billion and reiterated it expected 2024 revenue to rise in the low- to mid-20 per cent range in U.S. dollar terms.
It also saw a “more mild and gradual recovery” for the chip sector not including memory.
Analysts at J.P. Morgan noted in their list of “key negatives” from the earnings the slower recovery in logic semiconductor demand for 2024, now 10 per cent growth compared with 10 per cent- plus growth guided in January due to the gradual recovery in smartphones, computers, non-AI servers and a decline in auto demand.
The broader Taipei market was down more than 2.7 per cent on Friday morning.
