Taipei, Taiwan – Taiwan Semiconductor Manufacturing Company (TSMC) reported an impressive financial performance in the first quarter of 2024. The company exceeded expectations with a net revenue of 592.64 billion New Taiwan dollars and net income of NT$225.49 billion. This marked a 16.5% increase in revenue and an 8.9% increase in income compared to the previous year.
TSMC, known as the world’s largest producer of advanced processors, serves notable clients like Nvidia and Apple. The company’s positive outlook for the second quarter of 2024 is driven by robust demand for its industry-leading 3-nanometer and 5-nanometer technologies, despite some offset by seasonal fluctuations in the smartphone market. CFO Wendell Huang expressed optimism during the earnings call, highlighting the company’s anticipated performance for the upcoming quarter.
CEO C.C. Wei emphasized TSMC’s focus on technological leadership and an expanding customer base, projecting 2024 as a year of healthy growth. With the increasing demand for AI-powered computing and energy-efficient solutions, Wei highlighted the collaboration with AI innovators to meet the ever-growing market needs.
Looking ahead, TSMC anticipates second-quarter revenue to fall between $19.6 billion and $20.4 billion, driven by the production of 3-nanometer chips and plans for mass production of 2-nanometer chips by 2025. The surge in demand for AI chips, fueled by the rise of large language models like ChatGPT, has propelled TSMC’s stock performance, registering a remarkable 56% increase over the past year.
TSMC’s dominance in the global foundry market is evident, controlling 61% of the sector’s revenue in the fourth quarter. Analysts applaud TSMC’s strategic focus on advanced chip development, particularly in 3nm technology, to secure long-term growth and stay ahead in the competitive landscape. Strong financial indicators, like a net profit margin of 40%, demonstrate the company’s resilience and competitive edge in the industry.
Despite challenges, such as macroeconomic headwinds and supply chain disruptions, TSMC remains agile and adaptable. A recent earthquake in Taiwan, the strongest in 25 years, briefly disrupted operations, but the company reported minimal impact on its facilities and expressed confidence in recovering lost production in the coming quarter.
Moreover, TSMC’s Arizona subsidiary received preliminary approval for substantial government funding to develop cutting-edge semiconductors, reinforcing its position as a key player in the global tech industry. This significant investment underscores TSMC’s commitment to innovation and technological advancement in the semiconductor market.