World’s largest chipmaker Taiwan Semiconductor Manufacturing Corporation (TSMC) has sheared off its sales growth by cutting down the demand for cryptocurrency mining devices that are used for various transactions.
The corporation, at a conference, said that the sales for this year are expected to grow 6.5% in terms of U.S. Dollar which is less than an earlier increase of 7.9%.
Alex Huang, Analyst at Mega International Investment Services Corporation, said that the semiconductor industry has appeared too optimistic about the crypto mining devices demand but now, as the market conditions are changing rapidly, it has indicated the firm to lower the sales guidance.
The investor conference of TSMC was the center of attraction for the investors who were curious to know the company’s third-quarter results and waiting for the sales forecast for 2018 and the fourth quarter.
The chipmaker has a net profit of 2.88 billion USD in the third quarter. The net profit is 23.2% more than the previous quarter but less 0.9% from the last earlier. Fourth-quarter earnings are still on wait with the market expectations.
Lora Ho, senior vice president, and chief financial officer of TSMC said that the fourth quarter sales for the company are expected to range between9.35 billion USD and 9.45 billion USD, which is increasing 10% from the previous quarter.
According to her, in the fourth quarter, it is expected to see the downfall in the demands for mining devices that are used for cryptocurrency transactions. However, there is a rise in the demand for advanced smartphones, graphics processors and AI applications.
She further added that the chips made with TSMC’s 7-nanometer process, the latest technology which started commercially earlier this year, will add a boost to the sales growth in the upcoming quarter. As per her, the revenue growth for the fourth quarter will be offset due to the weakness in the crypto mining demands by the customers.