TSMC Anticipates 25% Surge in Growth for 2024

Taiwan Semiconductor Manufacturing Company (TSMC) is anticipating a 25% growth in revenues this year, following an expected dip of 8.2% in the first quarter. The company projects its Q1 revenues to be between €18 billion and $18.8 billion. In the fourth quarter of the previous year, TSMC witnessed significant growth in various sectors. High-performance computing (HPC) revenues, including artificial intelligence (AI), increased by 17% quarter-on-quarter. Smartphone revenues experienced a growth of 27%, while the automotive sector saw a 13% increase. TSMC's capital expenditure (capex) for the year is estimated to be between $28 billion and $32 billion. The company aims to invest in expanding its operations and enhancing its manufacturing capabilities. However, TSMC's net profit for Q4 was down by 19.3% year-on-year, amounting to $7.6 billion. Additionally, the gross margin for the same period decreased by 9.3% compared to the previous year. Despite these challenges, TSMC remains optimistic about the semiconductor industry as a whole. The company expects the industry to grow by 10% in the coming year. Furthermore, TSMC recently announced a delay in the construction of its second fab in Arizona. The company cited difficulties in hiring and the processing of US government subsidies as the reasons for the delay. TSMC also emphasized that its 3nm process, which is currently in production, is more comparable to Intel's upcoming 2nm process called 18A. Intel's 18A process is scheduled for production later this year, and TSMC believes its own 3nm process is on par with it, rather than its own 2nm process.