TSMC 2024 Q1 profit due to steady demand for AI chips
The Taiwan Semiconductor Manufacturing Company (TSMC) logo seen at the opening ceremony of the TSMC Global RnD Center in Hsinchu on July 28, 2023 (Photo by Amber Wang/AFP)
Amber Wang | AFP | Getty Images
Taiwan semiconductor manufacturing company on thursday Exceed sales and profit expectations Sales increased in the first quarter thanks to continued strong demand for advanced chips, particularly those used in AI applications.
Here are TSMC's first quarter earnings and LSEG consensus forecasts:
- Net revenue: NT$592.64 billion ($18.87 billion) compared to the expected NT$582.94 billion
- Net income: NT$225.49 billion, forecast NT$213.59 billion
TSMC reported that its net revenue was NT$592.64 billion, an increase of 16.5% year-on-year, and its net profit was NT$225.49 billion, an increase of 8.9% year-on-year.office Estimated first quarter earnings It will be between $18 billion and $18.8 billion.
TSMC is the world's largest manufacturer of advanced processors, including: Nvidia and apple As its customer.
“For the second quarter of 2024, we expect our business to be supported by strong demand for our industry-leading 3-nanometer and 5-nanometer technologies, partially offset by continued smartphone seasonality. ,” the company's chief financial officer, Wendell Hwang, said during an earnings call Thursday. .
CEO CC Wei said TSMC expects 2024 to be a year of “healthy” growth, supported by “our technology leadership and broader customer base.”
“Nearly every AI innovator is collaborating with TSMC to address the insatiable AI-related demand for energy-efficient computing power,” Wei said, adding that the company expects revenue contribution from its server AI processors to increase “this year. It is estimated that this will more than double.
TSMC expects second-quarter sales to be between $19.6 billion and $20.4 billion.
TSMC currently produces 3-nanometer chips and plans to begin mass production of 2-nanometer chips in 2025. Typically, smaller nanometer sizes result in more powerful and efficient chips.
TSMC stock has soared 56% over the past year due to strong demand for AI chips, driven by the proliferation of large-scale language models such as ChatGPT and Chinese clones.
“TSMC is well-positioned to achieve strong performance based on key industry trends. Continued demand for advanced chips, especially those used in AI applications, will continue to grow in both the short and long term. “The transition to 3nm technology is also another factor driving long-term growth for TSMC,” Brady Wang, associate director at Counterpoint Research, said on Monday ahead of the results.
TSMC accounted for 61% of global foundry revenue in the fourth quarter, according to data from Counterpoint Research. Samsung Foundry came in second with a market share of 14%.
“TSMC's net profit margin remains at the highest level in the company's history at 40% compared to the industry average of 14%, demonstrating TSMC's strong competitive position. “This is a result of an increased share of sales of chips with significantly higher profit margins,” Grzegorz Droz, market analyst at Conotoxia, said last week.
last year, TSMC's business was affected Due to macroeconomic headwinds and inventory adjustments. Smartphone and PC makers stockpiled chips during the pandemic, leaving them with surplus inventories as coronavirus-era demand waned.
Earlier this month, Taiwan was hit by the strongest earthquake in 25 years. TSMC spokesperson He said the construction site was normal. during the first inspectionHowever, workers at some factories were temporarily evacuated. Those workers then returned to work.
“There is no power outage, no structural damage to the plant, and no damage to critical tools, including all of our extreme ultraviolet lithography tools,” Chief Financial Officer Huang told investors and analysts on Thursday. There wasn't,” he said.
EUV machines are essential for manufacturing cutting-edge processors.
However, some wafers were affected and “had to be scrapped,” Huang said, adding that most of the lost production was recovered in the second quarter, with “minimal impact” on revenue. The company added that it expects this to be suppressed.
The US recently recognized TSMC's Arizona subsidiary receives preliminary approval Provides up to $6.6 billion worth of government funding to manufacture the world's most advanced semiconductors. TSMC is also eligible for approximately $5 billion in proposed financing.
Summarize this content to 100 words The Taiwan Semiconductor Manufacturing Company (TSMC) logo seen at the opening ceremony of the TSMC Global RnD Center in Hsinchu on July 28, 2023 (Photo by Amber Wang/AFP)Amber Wang | AFP | Getty ImagesTaiwan semiconductor manufacturing company on thursday Exceed sales and profit expectations Sales increased in the first quarter thanks to continued strong demand for advanced chips, particularly those used in AI applications.Here are TSMC's first quarter earnings and LSEG consensus forecasts:Net revenue: NT$592.64 billion ($18.87 billion) compared to the expected NT$582.94 billionNet income: NT$225.49 billion, forecast NT$213.59 billionTSMC reported that its net revenue was NT$592.64 billion, an increase of 16.5% year-on-year, and its net profit was NT$225.49 billion, an increase of 8.9% year-on-year.office Estimated first quarter earnings It will be between $18 billion and $18.8 billion.TSMC is the world's largest manufacturer of advanced processors, including: Nvidia and apple As its customer.“For the second quarter of 2024, we expect our business to be supported by strong demand for our industry-leading 3-nanometer and 5-nanometer technologies, partially offset by continued smartphone seasonality. ,” the company's chief financial officer, Wendell Hwang, said during an earnings call Thursday. .CEO CC Wei said TSMC expects 2024 to be a year of “healthy” growth, supported by “our technology leadership and broader customer base.””Nearly every AI innovator is collaborating with TSMC to address the insatiable AI-related demand for energy-efficient computing power,” Wei said, adding that the company expects revenue contribution from its server AI processors to increase “this year. It is estimated that this will more than double.TSMC expects second-quarter sales to be between $19.6 billion and $20.4 billion.TSMC currently produces 3-nanometer chips and plans to begin mass production of 2-nanometer chips in 2025. Typically, smaller nanometer sizes result in more powerful and efficient chips. TSMC stock has soared 56% over the past year due to strong demand for AI chips, driven by the proliferation of large-scale language models such as ChatGPT and Chinese clones.“TSMC is well-positioned to achieve strong performance based on key industry trends. Continued demand for advanced chips, especially those used in AI applications, will continue to grow in both the short and long term. “The transition to 3nm technology is also another factor driving long-term growth for TSMC,” Brady Wang, associate director at Counterpoint Research, said on Monday ahead of the results.TSMC accounted for 61% of global foundry revenue in the fourth quarter, according to data from Counterpoint Research. Samsung Foundry came in second with a market share of 14%.“TSMC's net profit margin remains at the highest level in the company's history at 40% compared to the industry average of 14%, demonstrating TSMC's strong competitive position. “This is a result of an increased share of sales of chips with significantly higher profit margins,” Grzegorz Droz, market analyst at Conotoxia, said last week.last year, TSMC's business was affected Due to macroeconomic headwinds and inventory adjustments. Smartphone and PC makers stockpiled chips during the pandemic, leaving them with surplus inventories as coronavirus-era demand waned.Earlier this month, Taiwan was hit by the strongest earthquake in 25 years. TSMC spokesperson He said the construction site was normal. during the first inspectionHowever, workers at some factories were temporarily evacuated. Those workers then returned to work.”There is no power outage, no structural damage to the plant, and no damage to critical tools, including all of our extreme ultraviolet lithography tools,” Chief Financial Officer Huang told investors and analysts on Thursday. There wasn't,” he said.EUV machines are essential for manufacturing cutting-edge processors.However, some wafers were affected and “had to be scrapped,” Huang said, adding that most of the lost production was recovered in the second quarter, with “minimal impact” on revenue. The company added that it expects this to be suppressed.The US recently recognized TSMC's Arizona subsidiary receives preliminary approval Provides up to $6.6 billion worth of government funding to manufacture the world's most advanced semiconductors. TSMC is also eligible for approximately $5 billion in proposed financing.
https://www.cnbc.com/2024/04/18/tsmc-q1-2024-earnings-on-strong-ai-chip-demand.html TSMC 2024 Q1 profit due to steady demand for AI chips
