TSMC places of work in San Jose, California, on April 18, 2024.
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Taiwan Semiconductor Manufacturing Firm on Thursday reported a 35% enhance in fourth-quarter revenue, beating estimates and hitting a recent report as demand for synthetic intelligence chips remained sturdy.
Listed below are the corporate’s outcomes versus LSEG SmartEstimates, that are weighted towards forecasts from analysts who’re extra persistently correct:
- Income: 1.046 trillion new Taiwan {dollars} ($33.09 billion), vs. NT$1.034 trillion anticipated
- Web revenue: NT$505.74 billion, vs. NT$478.37 billion anticipated
The world’s largest contract chipmaker has now posted year-over-year revenue development for eight consecutive quarters.
In the meantime, TSMC’s income within the December quarter rose by 20.5% from a yr in the past to surpass NT$1 trillion, additionally beating forecasts.
TSMC, Asia’s largest know-how firm by market capitalization, has benefited vastly from the proliferation of synthetic intelligence, producing superior AI processors for shoppers corresponding to Nvidia and AMD.
The corporate’s high-performance computing division, which incorporates synthetic intelligence and 5G purposes, made up nearly all of gross sales within the October-December quarter.
TSMC mentioned superior chips measuring 7-nanometer or smaller made up 77% of whole wafer income in the course of the quarter.
In semiconductor know-how, smaller nanometer sizes point out extra compact transistor designs, permitting quicker processing speeds and larger vitality effectivity.
“The demand for AI stays very sturdy, driving general chip demand throughout the whole server business,” Counterpoint Analysis senior analyst Jake Lai informed CNBC, predicting that 2026 will likely be one other “breakout yr” for AI server demand.
“With TSMC’s ongoing 2nm capability growth and new manufacturing contributing to income, together with steady growth of superior packaging… TSMC is anticipated to take care of sturdy efficiency in 2026,” Lai mentioned.
Nonetheless, he added that chip demand tied to client electronics corresponding to smartphones and PCs may very well be affected by the continued reminiscence scarcity and worth hikes.
