TSMC Expects Decrease in Q1 2022 Revenue Due to Customer Cut Orders

TSMC, one of the world's leading semiconductor companies, is expected to see a decrease in revenue for the first quarter of next year. According to reports from the Taiwan media Central News Agency, the company's capacity utilization rate may drop significantly due to the impact of customer cut orders. The terminal consumption market is reportedly weak, leading to an increase in semiconductor inventory levels and a corresponding decrease in TSMC's capacity utilization rate. As a result, the company's quarterly revenue is expected to decrease by 15% quarter-on-quarter.

According to a legal representative of TSMC, the company's performance in the first quarter of next year may decline from its peak in the fourth quarter of this year due to the impact of customer inventory adjustments. However, as the inventory adjustment process comes to an end, operations are expected to slowly improve in the second quarter.

In an effort to offset the effects of the economic downturn and rising inflation and energy costs, TSMC will reportedly adjust OEM prices for its customers next year. This move is expected to help stabilize the company's revenue and profit performance compared to its peers.

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