Taiwanese company TSMC, which remains the largest contract manufacturer of semiconductor products in the world, managed to sum up the results of the first month of the current quarter. In January, its revenue increased by 36% year-on-year to $8.9 billion, which is lower than the growth rate recorded for the entire last quarter (38.8%). However, such a decline may be dictated by a banal seasonal factor.
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As is well known, China and Taiwan go on a week-long holiday in late January and early February, so production life comes to a standstill, and the slowdown in TSMC’s revenue growth in January may well be explained by this circumstance. Analysts on average expect the company to increase revenue by 41% year-on-year in the first quarter as a whole. TSMC’s capital expenditures this year could rise to a record $42 billion if the company’s own forecasts come true.
TSMC also released information on the impact assessment of the earthquake that occurred on January 21. There was no structural damage to its buildings or infrastructure, but some silicon wafers were rejected as a result of the tremors. The estimated damage is estimated at $161 million, and first-quarter revenue should now be closer to the lower end of the range from $25 billion to $25.8 billion. These events did not affect TSMC’s forecast for the profit margin (from 57% to 59%) and the operating profit margin (from 46.5% to 48.5%). The aftermath of the earthquake also did not affect TSMC’s full-year forecast.