On Thursday, April 18, 2024, TSMC’s offices in San Jose, California, USA.
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British Semiconductor Second-quarter revenue and profit topped expectations on Thursday as demand for advanced chips used in artificial intelligence applications continues to surge.
Here’s how TSMC’s second-quarter results compare to London Stock Exchange Group consensus estimates:
- income: NT$673.51 billion (US$20.82 billion), expected to be NT$657.58 billion
- net income: NT$247.85 billion, while the LSEG SmartEstimate of NT$238.8 billion is biased towards more consistent and accurate analyst forecasts
TSMC announced that its net revenue increased by 40.1% from the same period last year to NT$673.51 billion, and its net profit increased by 36.3% from the same period last year to NT$247.85 billion. The company guided second quarter revenue Between $19.6 billion and $20.4 billion.
Chairman and CEO CC Wei said on an earnings call Thursday that second-quarter business was supported by strong demand for its industry-leading 3nm and 5nm technologies, despite continued smartphone seasonality. Growth offsets this need.
The explosive demand for artificial intelligence has led to a tight supply of chips. TSMC is a major global producer of advanced chips used in everything from smartphones to artificial intelligence applications, although its competitors include Samsung and Intel has been trying to challenge its dominance. it’s important apple and Nvidia among its customers.
“I also tried to achieve a balance between supply and demand, but I couldn’t. Today, the demand is so high, I have to work very hard to meet customers’ needs,” Wei told analysts.
“Supply will still be quite tight into 2025,” Wei warned, adding that the company hopes the tight supply situation will ease in 2026.
The chip giant currently produces 3nm wafers and plans to begin mass production of 2nm wafers in 2025.
TSMC said that the development of 2-nanometer technology is “progressing smoothly” and is expected to achieve mass production in 2025.
Wei said third-quarter business is expected to be supported by strong smartphone and artificial intelligence-related demand, adding that they still expect 2024 to be “a year of strong growth for TSMC.”
TSMC expects third-quarter revenue to be between US$22.4 billion and US$23.2 billion. This is related to Revenue $17.3 billion Released during the same period a year ago.
For this year’s capital budget, the company narrowed the range to $30 billion to $32 billion, compared with its previous forecast of $28 billion to $32 billion. Of this budget, 70 to 80 percent will be spent on advanced technology.
“We are working very, very hard to get enough capacity to support customers,” Wei said.
The company further added that it does not rule out the possibility of converting more “N5” technologies into “N3” technologies to meet the strong demand for 3nm chips.
TSMC shares closed down 2.43% on Thursday as reports that Washington was considering tightening export restrictions triggered a sell-off in U.S. technology stocks and sent Asian chip stocks tumbling.
Artificial intelligence is in great demand
Surge in demand for advanced chips used in artificial intelligence applications has sent TSMC’s Taiwan-listed shares up nearly 70% so far this year.
Brady said: “The demand for generative AI in the cloud and edge is surging. TSMC’s N3 process has good yields and well-managed production lines. There is sufficient market capital, and regional political factors are driving increased demand for advanced processes.” Deputy Director of Counterpoint Research Superintendent Wang said Friday before the results were announced.
Wang said that the 3-nanometer process production capacity is expected to more than double in 2024 compared with the previous year.
Needham analysts said on Monday that they expect TSMC to raise its revenue growth target for 2024, reiterated a “buy” rating and raised the price target for the chip giant’s U.S.-listed shares to $210 from $168.
Needham said: “We expect TSMC to raise its 2024 revenue growth outlook to ‘mid-to-high 20s’ from ‘low to mid 20s’ but maintain 2024 (capex) on its upcoming earnings call ) target is US$30 billion.
According to statistics, TSMC accounted for 62% of the global foundry market in the first quarter, higher than 59% in the same period last year. Counterpoint study data.
