TAIPEI :Taiwan’s TSMC, the world’s largest contract chipmaker, raised its full-year revenue forecast on Thursday given surging demand for chips used in artificial intelligence, and rejected the idea of a joint venture factory in the United States.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc and Nvidia supplier, has benefited from the global AI boom that has helped it weather the tapering off of pandemic-led electronics demand. #TSMCrevenueforecast
The bellwether for the chip industry earlier on Thursday posted net profit that beat market expectations. It raised its 2024 revenue forecast to growth of slight to above the mid-20 per cent range in U.S. dollar terms, versus a previous prediction of an increase in the low to mid-20 per cent range.
“AI is so hot; right now everybody, all my customers, want to put AI functionality into their devices,” Chairman and CEO C.C. Wei told analysts and reporters at an earnings conference.
The company’s U.S.-listed shares rose 3.3 per cent in pre-market trading following the results.
Its Taiwan-listed shares closed down 2.4 per cent before the earnings announcement, extending falls this week after U.S. Republican presidential candidate Donald Trump said that Taiwan “did take about 100 per cent of our chip business” and should pay the U.S. for its defence.
The United States has about 10 per cent of the world’s chip manfacturing capacity, down from 19 per cent in 2000, according to the Semiconductor Industry Association, a group representing the U.S. chip industry. Taiwan has about 18 per cent, down from 22 per cent in 2000. #TSMCrevenueforecast
Moreover, TSMC’s decision to reject a US joint venture has sparked discussions. Despite the potential benefits, TSMC prefers to focus on its existing operations. This move ensures that the TSMC revenue forecast remains positive without overextending resources.
