The world’s largest chipmaker recorded an increase in first-quarter revenue and income, pushed by demand for AI-related chips.
Taiwan Semiconductor Manufacturing Firm (TSMC) beat market expectations on Thursday because it introduced a internet revenue of 225.49 billion New Taiwan {dollars} (€6.52 billion).
The consequence, representing the agency’s first quarterly revenue rise in a 12 months, is up from a forecast of NT$213.59 billion (€6.18 billion).
TSMC’s internet income, the cash made earlier than deducting bills, got here in at NT$592.64 billion ($18.87 billion), additionally beating an anticipated determine of NT$582.94 billion ($16.86 billion).
The sturdy outcomes had been partially pushed by demand for chips utilized in AI purposes.
Throughout an earnings name on Thursday, CEO C.C. Wei stated he anticipated this curiosity to proceed over the approaching 12 months, estimating that TSMC’s income from server AI processors would leap by greater than 50% in 2024.
TSMC’s outcomes come at a combined time for chip firms.
In line with the Semiconductor Business Affiliation, international semiconductor gross sales totalled $526.8 billion (€494.9 billion) in 2023, a lower of 8.2% in contrast with the determine recorded in 2022.
This downturn can largely be defined by over-enthusiastic stockpiling.
As digital makers struggled to supply sufficient chips throughout the pandemic interval, they had been subsequently pushed to over-order, dampening demand for elements when the economic system started to stabilise.
TSMC has additionally needed to cope with two different challenges.
Earlier this month, the chipmaker briefly halted operations in Taiwan after the island was hit by an earthquake, though the agency claims the influence has been minimal.
A stoop within the smartphone market has additionally threatened the semiconductor business.
Though demand is now once more on the rise, international smartphone gross sales declined for 27 consecutive months up till October final 12 months.
In the meantime, ASML, a agency which makes the machines wanted to create laptop chips, shared mildly disappointing outcomes yesterday.
The Dutch group, like TSMC, nonetheless hopes that AI-related demand will help to drive up income over the approaching 12 months.