Taiwan Semiconductor Manufacturing Company, the world’s largest chipmaker, posted a second-quarter profit plunge Thursday as demand for consumer electronics continues to slump, CNBC reported.
TSMC reported revenue slipped 10% from a year ago to NT$480.84 billion, while net income fell 23.3% from a year ago to NT$181.8 billion. The company had previously forecast second-quarter revenue between $15.2 billion and $16 billion.
The company's operating profit margin deteriorated to 42.0%, down 7.1 percentage points from a year earlier and 3.5 percentage points lower from the prior quarter.
TSMC has been facing a slump in sales in recent months as clients clear their inventory. That follows a period of strong expansion as the pandemic triggered an increased demand for devices such as smartphones and data centers.
Revenue from smartphones fell 9% from the previous quarter, while high-performance computing revenue decreased 5%. However, revenue from automotive rose 3% from the previous quarter.