TSMC fails to make annual profits

The Taiwanese semiconductor manufacturer TSMC failed to meet its target sales during the second quarter of the fiscal year in a row in a sign of continued weakness in global demand for electronics.

The company’s first quarter revenue reached $16.7 billion, reversing analysts’ average forecast of $525.5 billion.

Sales fell 15% last month compared to the previous year at 145.4 billion new Taiwanese dollars

This shortage reveals a slump in the chip industry that has not yet reached its lowest levels, as high interest rates, high inflation and the ongoing banking crisis continue to weigh on consumer sentiment.

This comes as global PC shipments fell 29% in the first quarter, led by Apple’s MAC group of devices, according to the latest international statistics.

TSMC relies on Apple, other computer makers, and consumer electronics brands such as Nintedo to keep sales turbulent.

In turn, TSMC reduced this year’s capital expenditure plans to a range of $32 billion to $36 billion, down from $36.3 billion last year.