2023-04-20 06:00:00 ET
Taiwan Semiconductor Manufacturing (NYSE: TSM) is the world's largest contract semiconductor factory, meaning it doesn't sell its chips directly to consumers. Instead, it sells its products to companies like Nvidia , Advanced Micro Devices , or Apple (NASDAQ: AAPL) . While this helps diversify its customer base, it can also cause troubles when the consumer becomes weaker, as it is at the mercy of its customers and how often they order.
TSMC's latest revenue report revealed some cracks in the business that could inform investors of how other customers are performing. So let's look at this report and see its implications for some of its clients.
Taiwan Semiconductor makes some of the world's most powerful and smallest chips, including 3 nanometer (nm), 5 nm, and 7 nm products. Because Intel hasn't performed well in its research and development department lately, Taiwan Semiconductor's only real competition in this segment is Samsung. With Samsung directly competing against many of TSMC's customers, it's unlikely they'd switch away from TSMC as their supplier.
For further details see:
Taiwan Semiconductor Just Issued a Warning to Apple Shareholders