Text size

Taiwan Semiconductor

said T hursday that its second-quarter profit and revenue fell as it grapples with a slump in demand for chips in electronic devices.

The world’s largest contract chip maker said its second-quarter profit came to 181.80 billion Taiwanese dollars ($5.84 billion), down 23% from the same period a year earlier. 

Taiwan Semiconductor
’s
(ticker: TSM) revenue fell 10% to 480.84 billion Taiwanese dollars. Revenue in U.S. dollars was $15.68 billion, down 14% from the same period last year. 

“Our second quarter business was impacted by the overall global economic conditions, which dampened the end market demand, and led to customers’ ongoing inventory adjustment,” said Chief Financial Officer Wendell Huang in a statement.

TSMC dominates the market for high-end chips. It makes the main processors inside Apple (ticker: AAPL) iPhones, Qualcomm (QCOM) mobile chipsets, and processors made by Advanced Micro Devices (AMD).

“Moving into [the] third quarter 2023, we expect our business to be supported by the strong ramp of our 3-nanometer technologies, partially offset by customers’ continued inventory adjustment,” Huang said. 

TSMC said it expects third-quarter revenue between $16.7 billion and $17.5 billion and an operating profit margin between 38% and 40%.

Write to Adam Clark at [email protected]