, Columnist
TSMC's Outlook Isn’t the News You Were Hoping For
The chip giant beat some estimates but is slashing its industry growth forecasts, even under a rosy Covid-19 scenario.
The outlook is bleak for the chip industry.
Photographer: Ding Ting/Xinhua/Getty Images
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Taiwan Semiconductor Manufacturing Co. just posted net income that beat estimates, showed fatter margins, and forecast revenue surpassing expectations. Pretty impressive in a world where the Covid-19 pandemic is hitting economies and industries from all sides.
But that’s the end of the good news. The maker of chips for Apple Inc., Qualcomm Inc., Huawei Technologies Co., and almost everyone else, also provided a series of bullet points to investors that should make the whole sector worry.