January Figures from TSMC Indicate Semiconductor Market is Returning to Growth

Taiwan Semiconductor Manufacturing Company (TSMC) has reported a successful start to the year, with a 7.9% rise in annual revenue to $6.9 billion (a month-on-month increase of 22.4%) in January alone. This result defies seasonal trends and indicates a rising demand for artificial intelligence (AI) components.

Strong First-Quarter Projections

TSMC had already projected a minimum of 8% growth in revenue, to at least $18 billion, for the first quarter of the year when it announced results for the previous quarter in mid-January. If conditions remain favorable, revenue could reach $18.4 billion, marking a 12.5% year-on-year increase. Based on these projections, January’s revenue already contributed more than an expected one-third share of the quarter’s total income, providing a positive signal for investors who are banking on the surge in the semiconductor market.

2024 Goals and Capital Expenditure

For the entirety of 2024, TSMC aims to boost revenue by at least 21% and keep capital expenditure between $28 and $32 billion, mirroring the previous year’s investments. Of this, 70-80% will be allocated towards advanced technology processes, 10-20% on mature technologies, and about 10% on packaging technologies.

This strategic allocation is due to their confidence that there will be no oversupply of mature technology products, given that long-term contracts with clients are already in place. The company offers unique lithographic technologies tailored to the clients’ needs. TSMC leadership anticipates annual revenue growth of 15–20% in the coming years.

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