TSMC, a prominent semiconductor company, has recently disclosed its first profit drop in four years, as the slump in electronics demand persists

The Taiwan Semiconductor Manufacturing Company (TSMC) in Taiwan presented its financial results for the Q2 fiscal year 2023. The company had witnessed a price drop of around 5.1%, which is the lowest marked price in the last four years. However, the market had seen a gradual growth in the price per share, around $1.14, surpassing expectations. The company still faced a significant decline in overall pricing compared to the previous year.

The TSMC is one of the leading marketers to produce microchips, electronic equipment, and parts, showcasing its presence in the technology field. The company is tagged as the world’s largest chip producer, which also manufactures CMOS Image sensors, BCD-Power processes, Embedded NVM, RF, and more.

The sales that the company has presented have marked higher than its actual projection, marking around $15.7 billion this year. The reason behind the gradual drop is given by the decrease in the demand for the chips and the customer inventory adjustments that had shown its impact on the profit margins. The market drop has also impacted other chip manufacturing companies, specifically Advanced Micro Devices (AMD) and Intel (INTC). At the same time, predictions stated that Intel might lag in the advancement of semiconductor technology when compared to other chip manufacturing companies.

According to the Procurement Resource, TSMC, Taiwan had depicted a set-down in its price rate for the year FY23, showing the lowest in the last four years. However, the company experienced an increased price per share and sales rate. The company’s profit margins were affected due to the sudden decrease in the demand for electronic chips, which had impacted the overall scenario, affecting the performance of other leading chip manufacturers, including Intel and AMD.