TSMC Q1 2024 earnings on strong AI chip demand
From NBCUniversal: 2024-04-18 01:54:25
Taiwan Semiconductor Manufacturing Company (TSMC) exceeded expectations in first-quarter revenue and profit due to high demand for advanced chips, particularly those used in AI applications. TSMC reported a net revenue increase of 16.5% from last year and net income was up by 8.9%. They anticipate first-quarter revenue to be between $18 billion and $18.8 billion. TSMC is the largest producer of advanced processors globally and has clients such as Nvidia and Apple.
Analysts say TSMC is well-positioned for strong performance based on industry trends. The continued demand for advanced chips, especially those used in AI applications, bodes well for both the short and long term. They are focusing on developing advanced chips, with plans to mass-produce 2-nanometer chips in 2025. Strong AI chip demand has seen TSMC’s shares rise by 56% in the past year.
TSMC accounted for 61% of global foundry revenue in Q4, while Samsung Foundry came in second at 14%. The company’s net profit margin is at 40%, significantly higher than the industry average of 14%, due to increased sales of 7nm and smaller chips. The US recently granted TSMC’s Arizona subsidiary preliminary approval for government funding worth up to $6.6 billion for semiconductor production.
Following Taiwan’s recent earthquake, TSMC’s construction sites were inspected and deemed normal. Workers from some fabs were briefly evacuated but later returned to work. TSMC continues to operate as usual despite the earthquake. Stay tuned for more updates on this developing story.