TAIPEI : Taiwanese chipmaker TSMC forecast on Thursday a fall of as much as 16 per cent in current-quarter sales amid a weakening global economy and as the Apple Inc supplier struggles to clear inventory.
Earlier, the company posted a 2 per cent rise in first-quarter net profit, beating market expectations, but that was still the smallest quarterly growth in almost four years as global economic woes dented demand for chips. January-March net profit rose to T$206.9 billion from T$202.7 billion a year earlier, compared with the T$192.8 billion average of 21 analyst estimates compiled by Refinitiv.
Analysts said TSMC sales will be under pressure in the second quarter, which is traditionally a slow season for electronics manufacturers and as major clients cut back on orders. TSMC's dominance in making some of the most advanced chips for high-end customers such as Apple has shielded it from a broader industry downturn. But the chipmaker is likely to fall victim to the deepening slowdown.