TSMC Reports Slower Sales Growth in October

Taiwan Semiconductor Manufacturing Co (TSMC) reported a slower pace of sales growth in October compared to the prior month. The firm's revenue for October reached T$314.24 billion ($9.80 billion), representing a 24.8% increase from the previous month and a 29.2% rise from October 2022.

However, the year-on-year growth has significantly slowed from nearly 40% growth observed in the previous month. For the period from January to October, TSMC's revenue rose to T$2.340 trillion, marking a 31.5% increase compared to the same timeframe last year, slightly down from the 31.9% growth recorded in January to September.

As the world's largest contract chipmaker, TSMC reported robust earnings in the September quarter, driven by strong demand for its advanced chips from the artificial intelligence sector. The company has maintained an optimistic outlook for the upcoming year based on sustained AI demand.

However, TSMC cautioned about weakening chip demand in other sectors, predominantly personal computers, smartphones, and consumer electronics, with minimal signs of recovery in those areas. TSMC plays a crucial role in the chipmaking supply chain and is a significant supplier to major U.S. technology firms like NVIDIA (NVDA) and Apple (AAPL).