TSMC ranks as Taiwan's most profitable firm, Hon Hai posts largest sales in 2023

Taipei, July 5 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, retained the title as the most profitable company in Taiwan in 2023, according to Taipei-based credit information company CRIF.

iPhone assembler Hon Hai Precision Industry Co., also known as Foxconn on the global market, generated the largest sales in the country last year, CRIF citied the latest top 5,000 company report as saying.

In 2023, the top 5,000 companies in Taiwan, comprised of entities in the public and private sectors, posted NT$3.58 trillion (US$110 billion) in combined net profit, down 17.72 percent from a year earlier, while their aggregate revenue totaled NT$40.55 trillion, down 6.05 percent year-on-year.

CRIF said the decline both in net profit and sales largely reflected high inflation and inventory adjustments in the global supply chains.

It added that as Taiwan was a major supplier of the world's high tech gadgets, the country was prone to the impact from global economic weakness.

CRIF said a total of 2,082 Taiwanese companies saw their sales falling year-on-year in 2023, while 1,107 businesses enjoyed growth in both sales and net profit last year.

Out of the 1,107 companies, 664 generated more than NT$1 billion in sales each, accounting for 59.98 percent, CRIF said.

Among the top 5,000 firms in Taiwan, CRIF said, TSMC, which boasts its advanced chip production technologies, raked in NT$838.5 billion (US$25.87 billion) in 2023, helping itself keep the title as the most profitable company in Taiwan.

Hon Hai came in second after registering NT$142.1 billion in net profit in 2023, ahead of smartphone IC designer MediaTek Inc. (NT$77 billion), Fubon Financial Holding Co. (NT$65 billion) and United Microelectronics Corp., a smaller contract chipmaker (NT$61 billion), CRIF said.

Rounding out the 10 most profitable companies in 2023 were CTBC Financial Holding Co. (NT$57.6 billion), Cathay Financial Holding Co. (NT$51.5 billion), CTBC Bank (NT$41.3 billion), contract notebook computer maker Quanta Computer Inc. (NT$39.7 billion) and telecom services provider Chunghwa Telecom Co. (NT$36.9 billion).

According to CRIF, Cathay Financial rose from the 11th spot in 2022 to No. 7 in 2023; Quanta Computer returned to top 10 for the first time since 2013; and Chunghwa Telecom rose back to the top 10 list after being absent for two years.

In terms of sales, Hon Hai generated NT$3.45 billion in 2023, the most among the 5,000 companies, with its ranking unchanged from a year earlier. It was followed by TSMC (NT$2.15 trillion); Pegatron Corp., a smaller iPhone assembler (NT$1.18 trillion); state-owned oil supplier CPC Corp., Taiwan, (NT$1.10 trillion) and Quanta Computer (NT$907.95 billion).

Compal Electronics Inc., another contract electronics maker, came in sixth after posting NT$874.91 billion in sales in 2023, ahead of Bureau of Labor Insurance of the Ministry of Labor (NT$835.69 billion), state-run power supplier Taiwan Power Co. (Taipower) (NT$780.98 billion), Formosa Petrochemical Corp. (NT$710.31 billion) and Cathay Life Insurance Co. (NT$686.14 billion).

CRIF said high tech companies took five of the top 10 spots in terms of sales in 2023, and except for Taipower, the nine others were on the top 10 list in 2022.

Meanwhile, the Bureau of Labor Insurance saw its ranking rise one notch from a year earlier to No. 7 in 2023, while Formosa Petrochemical fell two places from the previous year to No. 9, CRIF said.