Yet the war in Ukraine, rising rates, and slowing international trade look set to be a mere hiccup in TSMC’s march forward, rather than derail its global dominance. The semiconductor industry is highly cyclical, with previous slumps bringing prolonged and double-digit drops for the Hsinchu-based company. Not this time.
Even chip king Taiwan Semiconductor Manufacturing Co. is getting hurt by the global economic downturn. But if you blink, you may miss it.
Revenue this quarter will drop around 2.7% from a year prior, the company forecast on Thursday, the first decline in four years and worse than sell-side analysts had predicted. That metric is in US dollars, the currency of the global chip industry. A weakening Taiwan dollar means that sales will actually expand in local money.
