TSMC's Q2 earnings report showed a 10% drop in revenue and a 23% drop in profits from the same period last year, with CEO Che Chia Wei projecting a 10% revenue drop for the full year due to falling demand for consumer electronics. However, the company expects the capacity shortage caused by high demand for AI-capable chips to improve by the end of next year. TSMC is also working with the US government to maximize subsidies and tax credits from the CHIPS Act to cover increased costs of fabricating in the US.
Key takeaways:
- The world's largest chipmaker, TSMC, is delaying the start of 4nm chip production at its new facility in Phoenix, Arizona, to 2025 due to labor shortages.
- TSMC is planning to send technicians from Taiwan to train local workers at the new Arizona production plant to make up for the delay.
- TSMC's Q2 earnings report showed a 10 percent decrease in revenue and a 23 percent decrease in profits from the same period last year, with a projected 10 percent revenue drop for the full year due to falling demand for consumer electronics.
- TSMC is working with the US government to maximize the subsidies and tax credits available in the CHIPS Act to cover the first five years of increased premiums from fabricating in the US.