Summary: Taiwan Semiconductor Manufacturing Co (TSMC) has reported better than expected sales for the final quarter of 2023, signaling an end to the global slump in the chip market. Despite a drop in revenues, TSMC’s sales performance surpassed analysts’ expectations, driven by increased demand for computer chips from the AI industry and Chinese electronics manufacturers’ efforts to stockpile semiconductors. TSMC’s high-tech chips, particularly its chip-on-wafer-on-substrate (CoWoS) chips, position the company to benefit from the anticipated AI boom. This positive performance comes after a year of sluggish growth and slow consumer demand for laptops and mobile phones.
TSMC, the world’s leading microchip manufacturer, reported sales worth NT$ 176.3 billion ($5.7 billion) for December 2023, representing an 8.4% drop compared to the same period in 2022. However, the company achieved better-than-expected revenues of NT$ 625.5 billion for the fourth quarter and NT$ 2.16 trillion for the full year 2023, marking a 4.5% drop compared to the previous year.
This news comes as a positive signal for the global chip market, which experienced a long period of decline. In November 2023, global semiconductor sales increased by 5.3% to $45.6 billion, the first rise in more than a year. The surge in demand for computer chips from the AI industry and the stockpiling efforts of Chinese electronics manufacturers contributed to this growth. According to Deutsche Bank, the anticipation of U.S. restrictions on China’s access to chips further fueled the demand.
TSMC’s strong sales performance positions the company well to benefit from the anticipated AI boom. With plans to invest NT$90 billion in a new advanced chip manufacturing facility in Taiwan, the company aims to capitalize on the growing demand for high-tech chips. As the dominant player in the CoWoS chip market, TSMC is poised for further success in the coming years.
While the global chip market faced challenges in 2023, TSMC’s better-than-expected sales indicate a turning point, pointing towards a recovery and renewed growth in the industry.
The source of the article is from the blog guambia.com.uy