(Yicai Global) Jan. 18 -- Taiwan Semiconductor Manufacturing, which makes chips for the likes of Apple, Qualcomm and Huawei, expects first-quarter revenue to fall between 21.3 and 22.3 percent as slowing economic growth pulls the plug on its record-high profit last year.

The Hsinchu-based firm, also known as TSMC, expects to bring in around USD7.35 billion this quarter at an operating profit margin of about 32 percent, it said online yesterday after releasing its earnings report for the fourth quarter of last year.

"We anticipate our business will be dampened by the overall weakening of the macroeconomic outlook, mobile product seasonality, and high levels of inventory in the semiconductor supply chain," said Chief Financial Officer Lora Ho.

Chairman Wei Zhejia still expects revenue to grow this year, but not at the 5 percent to 10 percent rate previously forecast, he said. The semiconductor industry will only grow about 1 percent this year as economic expansion slows, much less than last year's 8 percent, he added, saying the foundry industry will remain steady, expanding at a similar pace to 2018's 6 percent.

Industry insiders have expressed concerns about capital expenditure, ultraviolet technologies in seven nanometer wafers, business orders outside the smartphone sector and chips for 5G mobile networks.

For the fourth quarter, revenue was USD9.4 billion, up 10.7 percent from the previous quarter and 2 percent from a year earlier at an operating profit margin of 37 percent. The firm earned net income of TWD100 billion (USD3.2 billion), taking full-year earnings to a new high of TWD351 billion.

Before US markets opened today, TSMC's Taiwan-listed shares fell 0.9 percent to close at TWD218.50 (USD7.08). The benchmark Taiwan Capitalization Weighted Stock Index lost almost 0.5 percent.  Yesterday in New York, the firm's stock price [NYSE:TSM] ended 1.8 percent higher at USD36.29.

Editor: James Boynton