Taiwan Semiconductor release strong earnings and forecasts for 2024 📌

Taiwan Semiconductor Manufacturing (TSM.US) stocks are gaining about 5.7% before market open, following the company's quarterly earnings. Company forecasts over 20% revenue growth in 2024, driven by demand for advanced chips used in artificial intelligence applications. TSM's CEO C.C. Wei, during the earnings call, highlighted 2023 as a challenging year for the global semiconductor industry but noted the rising demand for generative AI applications. The company expects a growth year in 2024, supported by strong demand for its 3nm and 5nm technologies and robust AI-related demand. For Q1 2024, TSM anticipates revenue between $18B and $18.8B.

Financial dashboard Taiwan Semiconductor Manufacturing, data has been converted to USD and may vary slightly.

TSM's executive Chairman Mark Liu mentioned ongoing communication with the US government regarding their Arizona plant, with volume production of 4nm process technology expected in the first half of 2025. The start of production at this plant was delayed to 2025 due to a shortage of skilled workers, and the second Arizona plant is expected to begin operations between 2027 and 2028. Additionally, TSMC plans to open a new chipmaking foundry in Japan on February 24, with volume production set for Q4 2024. This expansion aligns with TSMC's strategy to meet customer needs and government subsidies in a globally fractured environment. The company also plans to start construction of a fab in Germany later this year. Despite a challenging 2023, TSMC anticipates healthy growth in 2024, driven by the demand for AI technology.

Source: xStation 5