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TSMC anticipates over 20% revenue growth in 2024 amid AI chip demand

EditorAhmed Abdulazez Abdulkadir
Published 01/20/2024, 06:10 AM
© Reuters.

TAIPEI - Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, has projected a revenue increase of over 20% for the year 2024. This optimistic forecast is primarily fueled by robust demand for artificial intelligence (AI) chips, which appears to be offsetting weaker sales in the smartphone and electric vehicle (EV) sectors.

Despite facing a challenging quarter in which the company's fourth-quarter profits declined to NT$238.7 billion, TSMC still managed to exceed market expectations. This performance signals resilience in the face of a global semiconductor industry that has seen varying demand across different sectors.

In response to growing demand, TSMC is aggressively expanding its global manufacturing footprint. The company has announced the start of construction for a new fabrication plant (fab) in Germany, scheduled to commence in the fourth quarter of this year. Additionally, TSMC is on the verge of opening its inaugural fab in Japan, with full production expected to ramp up in the same quarter.

Furthermore, TSMC is exploring the possibility of establishing an additional facility in Arizona, which would further bolster its presence in the United States. This expansion strategy is supported by the company's solid financial position, with a cash reserve of NT$1.7 trillion.

Maintaining a focus on its growth and technological leadership, TSMC plans to sustain its capital expenditure within the range of $28 to $32 billion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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