The number of working days in February is less, and the revenue of listed counter companies shows a decrease. According to the statistics of revenue in the first two months of 2023, the top ten revenue kings include Hon Hai, TSMC, Pegatron, Quanta, Compal, Formosa Plastics, and Wistron , General Assembly, Uni-President, and ASE Investment Holdings, most of which are still showing annual growth, resisting the effects of the off-season of the industry and fewer working days.
Among them, TSMC, the leading wafer foundry, had a revenue of NT$163.174 billion in February, a decrease of 18.4% from January and an annual increase of 11.1%, which was a new low in a year. However, it still hit a record high in the same period of the year. NT$363.225 billion, an increase of 13.8% over the same period in 2022.
The legal person pointed out that TSMC’s fewer working days in February and the impact of customers’ inventory destocking were the main reasons for the decline in TSMC’s revenue in February.
Formosa Plastics, a subsidiary of the Formosa Plastics Group, had revenue of 63.16 billion yuan in February, a monthly increase of 3.66% and an annual increase of 20.66%; the revenue for the first two months was 124.1 billion yuan, an annual increase of 6.28%. Formosa Plastics & Chemicals stated that both sales volume and sales price difference in February were warmer than in January, and compared with the same period in 2022, they also grew.
Zeng Yanyu, vice president of Qunyi Investment Consulting, pointed out that revenue in February is generally off-season, but the outlook of technology manufacturers is significantly improved compared with the third and fourth quarters of 2022. For example, the panel rebounded after the quotation fell to the cash cost, creating a boom. It implies that customers have to place orders in advance for the peak season in the second half of the year.
New demands such as e-sports GPU, ChatGPT, WiFi, TV, OLED, etc. have led to the willingness of technology manufacturers to build inventory, which is stronger than in the second half of 2022, so as to avoid repeating the 2020 epidemic and losing business opportunities (automotive chip experience). Therefore, purchasing managers People’s Index (PMI) data generally rose.
TSMC’s operations may reverse in a V-shape. TSMC’s President Wei Zhejia said in January that the recovery in the second half of the year has a mysterious meaning. He pointed out, “I am confident that the operation will rebound in the second half of the year. It is still uncertain whether it will be a V-shape but it will definitely not be a U. type.”
Rumors that customers of TSMC’s four major manufacturers have reduced orders will help normalize inventory. Apple’s self-made 5G modem chips are expected to be imported into iPhone 16 mobile phones. TSMC will take all 3-nanometer foundry orders.
The technology industry predicts that the first quarter will be the bottom, while optimists predict quarter-by-quarter growth. Conservatives believe that the second quarter will be sluggish, but the pressure of recession will ease.
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