Taiwanese contract chipmaker TSMC, a major supplier to Apple and Nvidia, on Thursday forecast an annual revenue growth of 10% in the global semiconductor industry, excluding memory chips.
“This is a new golden age of opportunity with AI,” said senior vice-president Cliff Hou, who was speaking at an event in Hsinchu, where the company is headquartered.
In April, TSMC lowered its outlook for the global semiconductor industry excluding memory to a growth rate of around 10% from a previous forecast of more than 10%
So it was a subtle change but it was a positive adjustment here in terms of that outlook and we’re seeing that reflected in a number of these chip names, obviously the sector also getting a boost and the heels of the blowout report here that we got from NVIDIA.
Thus, while it was a little adjustment, it was a good one in terms of that perspective, and we can see that reflected in several of these chip names. It goes without saying that the industry is also benefiting from this, especially in light of the recent blowout report from NVIDIA.
But once more, this is a similar kind of narrative when it comes to chip demand, and it’s obvious that these guys are experiencing more upside movement when you look at some of those rivals as well.
Indeed, as I mentioned previously, the corporation released a revenue report earlier in May before this.
Cliff Hou concluded by discussing income from January through April, which rose by around 26.2% when compared to the same time in 2023.
He also highlighted that the percentage of TSMC’s unique processes that are mature has grown gradually, reaching the objective of 67% in 2024 from 61% in 2020.
As per a TechNews report, TSMC organized a technology forum on May 23. During the event, the Senior Fab Director stated that despite the 3nm production capacity having more than tripled this year compared to last, efforts are still being made to meet customer demand because of the demands from mobile phones and HPC.
TSMC also disclosed at the event that, from 2020 to 2024, its compound annual growth rate (CAGR) in advanced processes below 7nm exceeded 25%. Furthermore, TSMC is still dedicated to investing; in 2024, capital expenditures will rise by 10% over the four years that before them.
He also highlighted that the percentage of TSMC’s unique processes that are mature has grown gradually, reaching the objective of 67% in 2024 from 61% in 2020.
Huang said that between 2022 and 2023, TSMC built an average of five fabs annually; this year, that number has increased to seven. Three fabrication plants, two packing plants, and two international facilities are among them.
The 2nm fabs, Fab 20 in Hsinchu and Fab 22 in Kaohsiung, are both moving along well and should be producing next year.
In talking about the use of EUV technology, he stated that TSMC currently owns 65% of the world’s EUV machines, a tenfold increase since 2019. Learning has led to a huge improvement in wafer yield and efficiency.
Refrences: TrendForce | Reuters
