Taiwan Semiconductor Manufacturing Co. lowered its first-quarter revenue forecast after a 6.4 magnitude earthquake forced the chipmaker to scrap wafers at its facilities.
The world’s largest contract chipmaker now expects Q1 revenue to hit the lower end of its US$25 billion to US$25.8 billion guidance. The January 21 tremor and subsequent aftershocks resulted in NT$5.3 billion (US$169 million) in losses, which will be recognized this quarter after insurance claims.
Despite the setback, TSMC maintained its gross margin target of 57-59% and operating margin of 46.5-48.5% for the period. The company reported January revenue of NT$293.29 billion (US$9.4 billion), up 35.9% from a year earlier.
The earthquake impact adds pressure on TSMC as it navigates rising competition from Samsung Electronics Co. and Intel Corp. in the advanced chipmaking space. While the company said its facilities suffered no structural damage, with safety systems and operations functioning normally, the production disruption highlights vulnerabilities in the global semiconductor supply chain.
TSMC kept its full-year outlook unchanged as it works to recover lost output at its Taiwan facilities, which produce chips for major clients including Apple Inc. and Nvidia Corp.
