Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is to replace Samsung Electronics Co as the world’s largest chip company by revenue this quarter, market researcher IC Insights said yesterday.
TSMC, the world’s biggest foundry services provider, is expected to post a quarterly revenue increase of 11 percent to US$20.2 billion, while Samsung’s revenue is forecast to fall 19 percent to US$18.29 billion due to a slump in the memorychip industry, IC Insights said.
TSMC has said its revenue would be US$19.8 billion to US$20.6 billion this quarter.
Photo: Reuters
Intel Corp is expected to rank third with revenue likely to be US$15.04 billion, up 1 percent from last quarter, but 26 percent lower than TSMC’s, IC Insights said, noting “the swiftness of TSMC’s rise to the top” from the third spot last year.
Citing the memorychip industry’s downturn, IC Insights cut its worldwide IC market growth forecast for this year to an annual increase of 7 percent, from its earlier estimate of 11 percent.
“The downgraded expectation for this year is almost entirely due to the collapse of the memory market in the second half of 2022,” it said. “It was as though someone flipped a switch to the off position for the memory market beginning in June.”
Memorychip makers have attributed the downturn to inventory adjustments by customers, and many chip companies expect the adjustment to extend into at least early next year, IC Insights said.
Early this month, Samsung co-CEO Kyung Kye-hyun, who heads the company’s semiconductor unit, said the second half of this year looks bad.
Similarly, Micron Technology Inc and Western Digital Corp forecast quarterly revenue declines of 17 percent and 18 percent this quarter respectively, citing sharp inventory corrections, IC Insights said.
Separately, TSMC, the sole chip supplier to Apple Inc’s iPhone series, yesterday reported a record revenue of NT$218.13 billion (US$7.06 billion) last month, up 16.8 percent month-on-month and 58.7 percent year-on-year.
Cumulative revenue totaled NT$1.43 trillion in the first eight months of this year, up 43.5 percent from NT$996.54 billion in the same period last year, TSMC said.
Gudeng Precision Industrial Co (家登精密), the sole extreme ultraviolet pod supplier to Taiwan Semiconductor Manufacturing Co (台積電), yesterday said it has trimmed its revenue growth target for this year as US tariffs are likely to depress customer demand and weigh on the whole supply chain. Gudeng’s remarks came after the US on Monday notified 14 countries, including Japan and South Korea, of new tariff rates that are set to take effect on Aug. 1. Taiwan is still negotiating for a rate lower than the 32 percent “reciprocal” tariffs announced by the US in April, which it later postponed to today. The
MAJOR CONTRIBUTOR: Revenue from AI servers made up more than 50 percent of Wistron’s total server revenue in the second quarter, the company said Wistron Corp (緯創) on Tuesday reported a 135.6 percent year-on-year surge in revenue for last month, driven by strong demand for artificial intelligence (AI) servers, with the momentum expected to extend into the third quarter. Revenue last month reached NT$209.18 billion (US$7.2 billion), a record high for June, bringing second-quarter revenue to NT$551.29 billion, a 129.47 percent annual increase, the company said. Revenue in the first half of the year totaled NT$897.77 billion, up 87.36 percent from a year earlier and also a record high for the period, it said. The company remains cautiously optimistic about AI server shipments in the third quarter,
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said its materials management head, Vanessa Lee (李文如), had tendered her resignation for personal reasons. The personnel adjustment takes effect tomorrow, TSMC said in a statement. The latest development came one month after Lee reportedly took leave from the middle of last month. Cliff Hou (侯永清), senior vice president and deputy cochief operating officer, is to concurrently take on the role of head of the materials management division, which has been under his supervision, TSMC said. Lee, who joined TSMC in 2022, was appointed senior director of materials management and
ELECTRONICS: Strong growth in cloud services and smart consumer electronics offset computing declines, helping the company to maintain sales momentum, Hon Hai said Hon Hai Precision Industry Co (鴻海精密) on Saturday announced that its sales for last month rose 10 percent year-on-year, driven by strong growth in cloud and networking products amid the ongoing artificial intelligence (AI) boom. The company, also known internationally as Foxconn Technology Group (富士康科技集團), reported consolidated sales of NT$540.24 billion (US$18.67 billion) for the month, the highest ever for the period, and a 10.09 percent increase from a year earlier, although it was down 12.26 percent from the previous month. Hon Hai, which is Apple Inc’s primary iPhone assembler and makes servers powered by Nvidia Corp’s AI accelerators, said its cloud
RSS