Taiwan Semiconductor jumps after mixed Q4, but confirms it will cut 2023 spending
PonyWang/E+ via Getty Images

Taiwan Semiconductor (NYSE:TSM) shares rose nearly 6% in early trading on Thursday as the global foundry reported mixed fourth-quarter results, but said it would lower spending this year as demand for semiconductors weakens.
For the fourth-quarter, Taiwan Semiconductor (TSM) earned $1.82 per share on $19.93B in revenue, up 26.6% year-over-year and 2% sequentially. 
Analysts were expecting the company to earn $1.77 per share on $20.92B in sales. 
In a statement, the company said advanced technologies, defined as 7 nanometer and lower, accounted for 54% of total wafer revenue.
The company reported December revenue earlier this week and said sales fell 13.5% month-over-month.
Looking ahead, Taiwan Semiconductor (TSM) said it would lower 2023 spending to be between $32B and $36B in 2023 on lower demand, down from $36.3B in 2022. The company initially said it would spend as much as $44B in 2022, but lowered its spending plans as the year wore on.
"We forecast the semiconductor cycle to bottom sometime in first half and see a recovery in second half 2023," CEO C.C. Wei said in comments obtained by Reuters. 
Taiwan Semiconductor (TSM) expects first-half revenue to decline in the single digits, with first-quarter revenue expected to be between $16.7B and $17.5B.
Following Taiwan Semiconductor's (TSM) report, other chip stocks saw fractional moves on Thursday, including Intel (INTC), AMD (AMD), Nvidia (NVDA) and Qualcomm (QCOM). Chip equipment makers also moved fractionally, including ASML Holding (ASML), KLA Corp. (KLAC) and Lam Research (LRCX).
Last month, Taiwan Semiconductor (TSM) started production of its 3 nanometer chips, with demand described as "very strong" by the company's Chairman.