Editor
Recent financial reports from TSMC indicate that the company’s consolidated revenue for October reached NT$314.24 billion, marking a 29.2% year-over-year increase. This growth rate, however, has decelerated from September’s 39.6% rise, raising concerns about the sustainability of AI chip demand.
The U.S. government is expediting the distribution of CHIPS Act subsidies to companies like TSMC, Intel, and Samsung Electronics, aiming to do so before any potential administrative changes. Despite political uncertainties, TSMC remains committed to its U.S. investment plans.
TSMC’s stock has surged over 90% this year, bringing its market capitalization to approximately $1.04 trillion. The October revenue increase is largely attributed to strong demand from Apple and AI-related technologies.
In its third-quarter earnings, TSMC reported a record net profit, reflecting a 54.2% year-over-year increase. For the fourth quarter, the company anticipates revenue between $26.1 billion and $26.9 billion, with a gross margin ranging from 57% to 59%.
Looking ahead to 2024, TSMC has raised its dollar revenue forecast, predicting nearly 30% year-over-year growth, driven by technological advancements and expanding AI applications. Revenue from AI server processors alone is expected to triple, accounting for 14% to 16% of total revenue.
Additionally, TSMC plans to commence mass production of its 2nm technology by late 2025, anticipating demand from major clients like Apple for next-generation products. Analysts expect TSMC’s advanced process products to continue driving prices upward.
Amid discussions about potential policy changes in the CHIPS Act, the U.S. government is negotiating with TSMC and other chipmakers for financial support to bolster domestic chip production. Industry insiders warn that these geopolitical maneuvers could disrupt the global semiconductor supply chain.
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