Taiwan Semiconductor Manufacturing (NYSE: TSM) reported mixed fourth-quarter results today and warned that weak demand for computer chips is likely to continue into the new year. Investors were disappointed, sending shares down as much as 2.4% on Friday morning.

There was a lot to like about Taiwan Semiconductor's most recent quarter. The world's largest contract chipmaker (known as TSMC for short) earned $1.82 per share in the fourth quarter, topping the $1.77 consensus, and posted a net profit margin of 47.3% in the period. Advanced technologies, the smallest and most powerful category of chips, accounted for 54% of total wafer revenue.

But revenue of $19.93 billion was shy of the consensus $20.56 billion estimate, and down 1.5% year over year. Semiconductors have historically been a cyclical sector, and demand for chips has been slow as TSMC customers watch closely to see if the economy is softening.

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Source Fool.com