TSMC outlook confirms expectations for global technology recovery in 2024 | Data Center Knowledge

(Bloomberg) — Taiwan Semiconductor Manufacturing Co. expects a return to solid growth this quarter, giving it room to ramp up capital spending in 2024, the world’s most valuable chipmaker said on Thursday, as the world’s most valuable chipmaker expands into smartphones and This suggests that it expects demand for computing to recover.

The major chip maker for Apple Inc. and Nvidia Corporation has budgeted capital expenditures of $28 billion to $32 billion (approximately $30 billion in 2023), with annual revenue growth expected to return to at least 20%. I predict that will happen. The company is moving ahead with plans for chip manufacturing plants in Japan, Arizona, and Germany, with the first of these expected to begin mass production in late 2024, significantly expanding TSMC’s global footprint.

The outlook for Taiwanese companies did not completely beat the most bullish expectations, but it comes after years of weak tech demand. Executives also spent considerable time talking about potential accelerators from the global AI development boom that TSMC will need better and more powerful chips to manufacture.

CEO CC Wei, who is set to take over as chairman from Mark Liu this year, reiterated that he expected a return to “healthy growth”. Shares of TSMC supplier ASML Holding rose more than 2%, leading gains in similar European chip equipment stocks.

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

Signs of recovery in the semiconductor manufacturing sector have appeared in recent weeks. The Semiconductor Industry Association estimated that chip sales rose in November after more than a year of decline. TSMC expects sales to rise at least 8% to $18.0 billion to $18.8 billion in the March quarter, compared with the expected sales of about $18.2 billion.

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