According to an analyst in Taiwan, the official statement made by chip designer Advanced Micro Devices, Inc. (AMD) yesterday that its third fiscal quarter of 2022 revenue would decrease compared to the guidance it had provided in the previous quarter will make predicting the Taiwan Semiconductor Manufacturing Company's (TSMC) revenues more difficult.
AMD's ability to consistently sell technologically innovative products on the market has been attributed in significant part to its collaboration with TSMC, the world's largest contract chip manufacturer, which has grown in size in the past few years. Intel Corporation's innovation rate has decreased.
AMD's first quarterly earnings report outlined a decline in its consumer products segment. Before the announcement, the company had forecast $6.7 billion in revenue. However, the actual revenue is now expected to be $5.6 billion, down $1.1 billion from the previous estimate.
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AMD acquires components from TSMC, and the revenue deficit sparked concerns about the Taiwanese business's capacity to meet its revenue projections shortly before it was required to disclose its revenue figures in September.
TSMC generated NT$208 million in sales in September, compared to the same month last year, owing to a 36% increase in sales.
As the semiconductor industry contends with supply chain issues and an economic slowdown, TSMC's orders and earnings for the upcoming year are expected to be unpredictable.
Xingzhi describes the high performance computing (HPC) market as being far from having any assurance about customer demand, as well as big players as being undecided about the demand for their goods for the current quarter.
The TSMC is a research group.
According to the analyst, the HPC uncertainty raises doubts about TSMC's revenue projections for 2023. Several investment banks share this concern. For example, Goldman Sachs predicts that as the current quarter comes to an end, the chipmaker's revenue growth would remain unchanged.
Despite a drop in orders, TSMC's pricing is increasing; as a result, revenue growth will resume next year when new orders are placed. Both the longer waiting time for the business to recover its capital investment are both reasons for increasing pricing.
