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The world’s largest contract chipmaker Taiwan Semiconductor Manufacturing Firm on Thursday posted better-than-expected revenue and income on the again of weaker macroeconomic situations.
Listed below are TSMC’s fourth-quarter outcomes versus LSEG consensus estimates:
- Income: 625.53 billion New Taiwan {dollars} ($19.62 billion), vs. NT$618.31 billion anticipated
- Internet earnings: NT$238.71 billion, vs. NT$225.22 billion anticipated
TSMC reported income slipped 1.5% from a 12 months in the past to NT$625.53 billion, whereas internet earnings dropped 19.3% from a 12 months in the past to NT$238.71 billion. That compares with TSMC’s steerage for fourth-quarter income between $18.8 billion and $19.6 billion.
TSMC counts Apple and Nvidia amongst its greatest shoppers. TSMC produces essentially the most superior processors present in Apple’s iPhones.
“Within the fourth quarter, income elevated 14.4% sequentially [from the third quarter], supported by the continued robust ramp of our industry-leading 3-nanometer know-how,” stated TSMC in its fourth-quarter earnings report.
Chipmakers similar to Samsung Electronics and SK Hynix have reported declines in quarterly income as a consequence of a post-pandemic plunge within the demand for client electronics like smartphones and laptops. That resulted in smartphone and PC makers grappling with extra inventories of chips.
However analysts say chip inventories at smartphone and PC makers are working down and anticipate restocking demand to choose up.
In its third-quarter earnings report in October, TSMC stated that its enterprise was supported by the industry-leading 3-nanometer know-how and better demand for 5-nanometer applied sciences, partially offset by clients’ ongoing stock adjustment.
“TSMC’s robust ramp-up in N3 and AI purposes positions it as a serious beneficiary in AI semiconductors,” Brady Wang, affiliate director at Counterpoint Analysis, stated Tuesday. N3 refers to TSMC’s most superior node, which produces 3-nanometer chips.
“Nanometer” in chips refers back to the dimension of particular person transistors on a chip. The smaller the scale of the transistor, the extra of them will be packed onto a single semiconductor. As such, smaller nanometer sizes usually yield extra highly effective and environment friendly chips.
“The anticipated surge in AI-based PC purposes in 2024 underscores TSMC’s essential position, solidifying its dominance and finest positioning in offering subtle 5-nanometer and 3-nanometer applied sciences for AI-enhanced computing units,” stated Wang in a be aware on Jan. 16.
TSMC at the moment manufactures 3-nanometer chips and plans to start out 2-nanometer mass manufacturing by 2025.
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