There was an enormous drop in the 2nd quarter sales of the Taiwan Semiconductor Manufacturing Company, which is the largest contract chipmaker of the world, but the pace of the fall eased after a strong pick up in sales in June.
According to a report by Taiwan Semiconductor Manufacturing Company, there was a net profit of NT$66.77bn which is equivalent to $2.15billion in the 2nd quarter of 2019, a 7.6 percent fall year-on-year.
That figure indicated a moderation in the extent of the firm’s profit decline after it posted its sharpest fall in more than 7 years of 31.6 percent in the 1st quarter.
But, in a sign that the worst might be over for the giant chipmaker, revenue in the 2nd quarter increased 3.3 percent as compared to the last year’s 2nd quarter sales, following a 16 percent drop in the initial quarter of 2019.
The figures came after a strong bounce in sales in June following months of inactive shipments, with monthly sales rising 21.9 percent as compared with last year’s sales in the same period. Taiwan Semiconductor Manufacturing Company in May stated that it could continue delivering semiconductors to Huawei without falling foul of United States’ restrictions on the Chinese firm.
Taiwan Semiconductor Manufacturing Company is considered to be an indication of setting trends for the health of the global electronics industry, as it controls almost half of the foundry market of the world & supplies major tech firms inclusive of Apple & Huawei.
The chip-making industry has been rocked by decelerating demand for semiconductors & continuous trade tensions between major economies inclusive of the United States and China.