• Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM) cut its 2023 capital expenditure outlook to closer to the bottom end of the previously forecast $32 billion - $36 billion range.

• TSMC reaffirmed projections for revenue in the first half of 2023 to decline by about 10% in U.S. dollar terms, Bloomberg cites Chairman Mark Liu's statement to reporters after hosting the firm's annual shareholders' meeting on Tuesday.

• The update reflects the critical Apple Inc (NASDAQ: AAPL) supplier's struggle with weak demand for smartphones and computing chips amid an uneven post-Covid Chinese economic recovery.

• Also Read: What's Going On With Taiwan Semiconductor Stock Tuesday

• TSMC reaffirmed a low- to mid-single-digit revenue decline in 2023 — about in line with estimates amid the global tech slump and uncertainty over the revival of China's economy.

• Liu acknowledged undergoing an inventory adjustment period, with recovery in some end markets. TSMC expected its sales to drop slightly in 2023 but is ready to capture substantial growth starting in 2024.

• Liu discussed TSMC's longer-term prospects while expressing confidence about a broader 2024 sector recovery.

• The partner to AI chip designer Nvidia Corp (NASDAQ: NVDA) expects a multiplication of AI services on mobile devices driving demand for the advanced chips.

• TSMC plans to double its advanced chip packaging capacity, Liu told reporters.

• In 2022, sales from high-performance computing surpassed smartphones for the first time, Liu said. He expected the rise of generative AI to firm up that trend.

• TSMC has been diversifying its manufacturing footprint over the past two years to mitigate customer concerns over geopolitical uncertainties in the Taiwan Strait.

• Price Action: TSM shares closed lower by 0.07% at $97.98 premarket on the lat check Tuesday.

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

This article TSMC Reduces 2023 Capex Outlook, Foresees Substantial Growth Starting 2024 originally appeared on Benzinga.com

.

? 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.