TSMC is expected to announce a 23% drop in fourth-quarter profits, but analysts say Apple will continue to keep orders "steady" in the near term. Ahead of Thursday's earnings report from Apple chip partner TSMC, analysts forecast the company would post a net profit of NT$226.4 billion (about US$7.21 billion) in the three months to December.
Reuters reported that this figure was a sharp drop from the net profit of Tk 295.9 billion in the same period last year, according to LSEGSmartEstimate data obtained from 20 analysts.
According to calculations based on data released by TSMC, revenue in this quarter reached NT$625.5 billion (US$20.1 billion), a slight improvement over the same period last year.
In explaining its forecast, TSMC believes that there are many factors affecting this quarter, including a reduction in global semiconductor demand in the second half of 2022. As smartphone and computer makers draw down inventories, restocking should increase demand.
Profit changes will also be affected compared to a strong performance in 2022 due to strong demand from TSMC's main customers Apple and NVIDIA.
Looking ahead to the first quarter, analysts are positive about TSMC's prospects. Fubon Securities, which had previously expressed concerns about TSMC's first quarter, now believes Apple's wafer demand "will remain stable in the short term." While a seasonal slowdown is expected in the current quarter, analysts "do not see additional order cuts."