Taiwan Semiconductor Manufacturing Co. surged as much as 4.6% Friday after investors bet the company would be among the first to emerge from an industry downturn in 2023. The chipmaker is one of the most valuable in the world, and investors believe it will be able to weather the storm better than its competitors.

Taiwan Semiconductor Manufacturing Co. (TSMC) has announced that its revenue could drop by up to around 5% in the current quarter, and that it may cut this year's capital expenditures compared to last year. This is due to weak global demand.

Taiwan Semiconductor Manufacturing Co. (TSMC) is a leading semiconductor manufacturer that counts many of the biggest chip designers, including Apple and Nvidia, as its customers.

TSMC has announced that its capital expenditure will decrease to $32 billion to $36 billion this year, down from $36.3 billion in 2022.

‍The shortfall at TSMC suggests that even the world's largest contract manufacturer of chips can't escape a global slowdown in spending by consumers affected by rising interest rates and accelerating inflation.