Taiwan Semiconductor Jen-Chau Huan CFO Says We Expect The Total Impact From The Earthquake To Reduce Our Q2 Gross Margin By About 50 Basis Points, Mainly Due To The Losses Associated With Wafer Scraps And Material Loss
Portfolio Pulse from Benzinga Newsdesk
Taiwan Semiconductor's CFO, Jen-Chau Huan, announced in a conference call that the recent earthquake is expected to reduce the company's Q2 gross margin by approximately 50 basis points. This reduction is primarily attributed to losses from wafer scraps and material loss.
April 18, 2024 | 3:23 pm
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The earthquake's impact on Taiwan Semiconductor is expected to reduce Q2 gross margin by about 50 basis points, mainly due to wafer scraps and material losses.
The reduction in gross margin by 50 basis points is significant for investors as it directly affects profitability. The losses mentioned are directly related to the company's production efficiency and cost management, which are critical factors for its financial performance. Given the specificity of the CFO's statement, the negative impact on the stock price in the short term is likely due to anticipated lower profitability.
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IMPORTANCE 75
RELEVANCE 100