Taiwan Semiconductor Manufacturing Co Ltd, also known as TSMC, has reported its first revenue quarter-on-quarter decline in Q1 2023 in its financial report released last week as the global chip market take a hit – notably caused by a decline in PC demand.

While TSMC’s revenue rose 3.6% YoY to NTD508.6 billion ($16.6 billion) and net profit attributable to shareholders 2.1% to TWD207 billion in Q1 2023 beating analysts' estimates, these numbers fell markedly quarter on quarter.

In its guidance for the present quarter, the semiconductor said revenue could fall as much as 16% in the three months to the end of June, as the weak global economy and high energy prices weigh on demand from customers. The company added that the decline may extend into the third quarter before rebalancing to a healthier level.

As seen in the Techloy illustration below, the steady climb since the pandemic season plateaued in Q4 2022, and took a nosedive in the first quarter of 2023. Revenue in the quarter fell 18% QoQ from NTD625.5 billion ($20.4 billion) in Q4 2022. Net profit also succumbed to the decline in sales registered in the quarter.