TSMC's Outlook Backs Hopes for Global Tech Recovery in 2024

The world's most valuable chipmaker is moving ahead with plans for new facilities in Japan, Arizona, and Germany.

Bloomberg News

January 19, 2024

1 Min Read
TSMC's Outlook Backs Hopes for Global Tech Recovery in 202
Image: Bloomberg

(Bloomberg) -- Taiwan Semiconductor Manufacturing Company expects a return to solid growth this quarter and gave itself room to raise capital spending in 2024, suggesting the world’s most valuable chipmaker anticipates a recovery in smartphone and computing demand.

The main chipmaker to Apple Inc. and Nvidia Corporation is budgeting capital expenditure of $28 billion to $32 billion – versus about $30 billion in 2023 – and expecting revenue growth to bounce back to at least 20% for the year. It’s moving ahead with plans for chipmaking plants in Japan, Arizona, and Germany – the first of which will begin mass production at the end of 2024 in a big boost to TSMC’s global footprint.

The Taiwanese company’s outlook, while not quite surpassing the most bullish estimates, comes after a years-long slump in tech demand. Executives also spent a chunk of time talking about the potential catalysts from the boom in AI development worldwide, which requires powerful chips that TSMC excels in fabricating. 

Chief Executive Officer C. C. Wei, who’s set to take over the chairmanship from Mark Liu this year, reiterated he expects a return to “healthy growth.” Shares in TSMC-supplier ASML Holding rose more than 2%, leading a rally in fellow European chip equipment stocks. 

“Our business has bottomed out on a year-over-year basis, and we expect 2024 to be a healthy growth year for TSMC,” Wei said.

Signs of a recovery for the chipmaking sector have emerged in recent weeks. The Semiconductor Industry Association estimated chip sales increased in November after more than a year of declines. TSMC is projecting revenue growth of at least 8% to $18 billion to $18.8 billion in the March quarter, versus expectations for around $18.2 billion. 


Read more about:

Asia Pacific

About the Author(s)

Bloomberg News

The latest technology news from Bloomberg.

Subscribe to the Data Center Knowledge Newsletter
Get analysis and expert insight on the latest in data center business and technology delivered to your inbox daily.

You May Also Like