TSMC to the World: We Have No Good News for You
The most important chipmaker isn’t immune to the sector’s downdrafts, even if its leaders are projecting calm.
Spending plans keep getting cut.
Photographer: Lam Yik Fei/BloombergExecutives at the world’s most important chipmaker made a valiant attempt at calming global nerves Thursday over the outlook for the semiconductor sector. But equipment suppliers and investors are unlikely to find much to cheer from Taiwan Semiconductor Manufacturing Co.’s third-quarter earnings.
Net income at TSMC beat estimates, but that’s because the company has become a master at managing expectations. A 3% drop in the Taiwan dollar was a major boost to the bottom line. The revenue outlook for the current quarter appears pretty solid, and the company reiterated its belief that growth for the year will be at a healthy mid-30% level. TSMC also repeated its long-term gross margin target of 53%.