Global the most critical semiconductor foundry forecast sales in the second quarter can raise by up to 30% — higher than expected — amid an artificial intelligence boom fueled by its customers including Nvidia and Apple.
Taiwan Semiconductor Manufacturing Company (TSMC) has indicated that it expects this Second-quarter revenues will be between $19.6 billion and $20.4 billion, above estimates of $19.1 billion. He also said he would maintain his spending plans up to the amount This year, $32 billion, most of which will go to advanced technologiesamid high demand for chips in the AI industry.
“Our business in the first quarter was impacted by smartphone seasonality, partially offset by continued HPC-related demand,” said Wendell Huang, senior vice president and chief financial officer of TSMC. statement. “As we enter the second quarter of 2024, we expect our business to be supported by mighty demand for our industry-leading 3nm and 5nm technologies, partially offset by continued smartphone seasonality.”
TSMC CEO CC Wei said the chipmaker works with many artificial intelligence companies “to meet AI’s insatiable demand for energy-efficient computing power,” Reuters reported on its first-quarter earnings call. However, Wei said TSMC did will revise its expectations regarding the growth of the semiconductor market (excluding memory chips) for 2024 and lowered its growth forecast for the foundry, Bloomberg reported.
“Demand for AI remains mighty, but smartphone and PC app recovery is slowing,” Jeffries analysts said in a note on TSMC’s first-quarter results.
Earlier this month, TSMC reported sales of NT$592.6 billion, or $18.5 billion, in the January-March period, marking a 16.5% year-on-year raise in March quarter revenues, and the fastest monthly sales growth since 2022. It also beat revenue expectations of NT$579.5 billion, or $18.1 billion.
TSMC received $6.6 billion for its project under the US CHIPS and Science Act the first major chip production center in the US in Phoenix, Arizona in early April. TSMC has already done this two chip manufacturing plants in Arizona is expected to start production in 2025 and 2028, and part of the up-to-date funds will be used for this purpose build a third facilityincreasing the company’s investment from $40 million to $65 million, the Biden administration said.
