Taiwan Semiconductor Manufacturing (TSM) has reported its sales figures for the month of August, indicating a promising performance for the company in the September quarter. As the world's largest third-party semiconductor chip manufacturer, TSMC's revenue for August experienced a 13.5% decline compared to the previous year but rose by 6.2% from July.
Analysts have analyzed TSMC's sales results for the third quarter so far, combining the data from July and August, and found that it has already reached 69% of analyst expectations. This figure slightly surpasses the five-year historical average of 66% for September quarters, leading experts to view TSMC's performance as a strong start to the quarter.
TSMC is a dominant player in the high-end chip market, manufacturing processors for Apple iPhones, Qualcomm mobile chipsets, and Advanced Micro Devices' processors. With approximately 60% market share in the third-party chip-manufacturing sector, TSMC far exceeds its closest competitor Samsung, which holds a market share of 12%, according to TrendForce.
While TSMC's August numbers are encouraging, analysts stress caution due to subdued guidance provided by companies in key tech markets for the second half of the year. TSMC previously lowered its financial guidance for the year, predicting a 10% year-over-year decline in revenue. The company cited an unexpected decrease in demand outside the AI chip market as the primary reason for this adjustment.
Despite these uncertainties, analysts maintain a positive outlook for TSMC's stock and reiterate their confidence in the company's long-term growth potential. With a target price of 650 Taiwan dollars per share, representing a 20% upside from current levels in TSMC's American depositary receipts, experts believe in TSMC's strong leadership position in the industry.
In conclusion, Taiwan Semiconductor Manufacturing has showcased a solid performance in the September quarter, outperforming expectations and maintaining its position as a market leader in chip manufacturing.