TAIPEI (Reuters) – TSMC, the world’s largest contract chipmaker, posted on Thursday its steepest profit decline in over seven years in the first quarter of the year, amid fears about the impact that slowing electronics demand could have on its business.
TSMC, formally Taiwan Semiconductor Manufacturing Co Ltd, posted net profit of T$61.4 billion ($1.99 billion) for January-March, 31.6 percent less than a year earlier, and the steepest fall since the third quarter of 2011.
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The result also lagged the T$64.3 billion average of 21 analyst estimates compiled by Refinitiv.
The company, a proxy for global technology demand as its clients include iPhone maker Apple Inc, Qualcomm Inc and Huawei Technologies Co Ltd, forecast second-quarter revenue of $7.55 billion to $7.65 billion. That would be 2.5 percent to 3.8 percent lower than the year earlier.
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It also forecast gross margin for the second quarter of 43 percent to 45 percent, while operating margin will be 31 percent to 33 percent, compared with 47.8 percent and 36.2 percent a year earlier, respectively.
The forecast comes as investors fret about a global tech slowdown after chip suppliers including Samsung Electronics Co Ltd recently flagged weak...
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