Despite iPhone 15 Launch, TSMC’s Profits Hit a Low Point. TSMC, the renowned processor manufacturer for iPhones, reported its most significant profit decline since 2019, even with the quarter ending alongside the iPhone 15 range’s launch.
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Prior to the July 2023 earnings report, analysts had accurately anticipated a dip in TSMC’s profits, assuming a rebound in the September quarter, buoyed by the iPhone 15 series’ demand. However, as per CNBC, even though TSMC’s recent figures surpassed analyst predictions, they signify the company’s steepest decline since early 2019.
For the 2023 quarter, TSMC recorded profits of $6.69 billion, marking a 10.83% drop from the previous year. Meanwhile, net income also saw a 24.87% reduction within the same timeframe. The company commented, “Our business thrived due to the advanced development of our 3-nanometer technology and an increased demand for our 5-nanometer technologies.”
It’s worth noting that TSMC is the sole manufacturer of Apple Silicon processors, with Apple accounting for nearly a fifth of the Taiwanese firm’s total revenue. Reports suggest Apple has secured all of TSMC’s 3-nanometer production capacity for its Apple Silicon devices.
Without explicitly naming Apple or any specific client, TSMC’s CEO, CC Wei, stated that the company anticipates continuous advancement in 3-nanometer technology throughout the year’s final quarter.
Furthermore, Wei mentioned a rising demand for processors due to AI advancements, emphasizing that this isn’t “enough to offset” a weakened consumer electronics demand. He added, “Owing to ongoing weak macroeconomic conditions and sluggish recovery of demand in China, clients remain cautious.”
As the current economic landscape poses its challenges, TSMC previously announced its intentions to commence 2-nanometer processor production by 2025. It’s pertinent to mention that TSMC’s 3-nanometer technology was employed in the A17 Pro chips used in the high-end iPhone 15 models. .
