Taiwan Semiconductor Manufacturing Co (TSMC) has surpassed analysts’ expectations by posting better-than-expected sales in the final quarter of 2023. This positive development comes despite a drop in revenue and indicates that the global chip market’s slump may finally be coming to an end.
TSMC, which is responsible for manufacturing the microchips used in nearly all electronic devices, reported sales worth NT$ 176.3 billion ($5.7 billion) for December 2023. Although this represents an 8.4% decline compared to the same period in 2022, it exceeded the predictions of 27 analysts polled by Factset.
The Taiwan-based company achieved revenues of NT$ 625.5 million for the fourth quarter and NT$ 2.16 trillion for the full year 2023. While this signifies a 4.5% decrease compared to its 2022 full-year sales, TSMC’s stable share prices indicate a measure of confidence from investors. The company’s shares remained relatively flat, having risen by 21% in the previous 12 months.
Industry experts had predicted that TSMC would generate sales of only NT$ 615.8 million in the fourth quarter of 2023 due to the global semiconductor market’s slow consumer demand for laptops and mobile phones. However, the chipmaker’s better-than-expected performance points to a potential end to the recent downturn in this market.
The global semiconductor sector experienced a positive turn in November 2023, with sales rising for the first time in over a year. According to data from the World Semiconductor Trade Statistics (WSTS) organization, semiconductor sales increased by 5.3% to $45.6 billion, marking the first growth since August 2022. This increase can be attributed to strong demand for computer chips from the AI industry and Chinese electronics manufacturers stockpiling semiconductors ahead of anticipated U.S. restrictions on China’s chip access.
TSMC stands to benefit from any AI boom, given the dominance of its high-tech chip-on-wafer-on-substrate (CoWoS) chips. The company outlined plans in July 2023 to invest NT$90 billion in constructing a new advanced chip manufacturing facility in Taiwan, aiming to capitalize on the anticipated growth in AI.
In conclusion, TSMC’s better-than-expected sales in the final quarter of 2023 suggest that the global chip market’s slump could be coming to an end. The positive performance aligns with the recent increase in global semiconductor sales, driven by demand from the AI industry and Chinese electronics manufacturers. As TSMC focuses on expanding its capabilities in the AI sector, it is positioned to capitalize on future growth opportunities.
Frequently Asked Questions (FAQs) Related to the Above News
How did Taiwan Semiconductor Manufacturing Co (TSMC) perform in the final quarter of 2023?
TSMC surpassed analysts' expectations by posting better-than-expected sales in the final quarter of 2023.
Did TSMC's sales decline compared to the same period in 2022?
Yes, TSMC's sales for December 2023 represented an 8.4% decline compared to the same period in 2022.
How did TSMC's sales performance compare to analysts' predictions?
TSMC's sales performance exceeded the predictions of 27 analysts polled by Factset.
Did TSMC's revenue decrease for the full year 2023?
Yes, TSMC's revenue for the full year 2023 decreased by 4.5% compared to 2022.
Did TSMC's share prices indicate investor confidence?
Yes, TSMC's stable share prices indicate a measure of confidence from investors, with shares remaining relatively flat after a 21% rise in the previous 12 months.
What contributed to the recent downturn in the global chip market?
The recent downturn in the global chip market was attributed to slow consumer demand for laptops and mobile phones.
Which organization reported the first growth in semiconductor sales in over a year?
The World Semiconductor Trade Statistics (WSTS) organization reported the first growth in semiconductor sales in over a year.
What factors contributed to the increase in semiconductor sales?
The increase in semiconductor sales was driven by strong demand for computer chips from the AI industry and Chinese electronics manufacturers stockpiling semiconductors.
How do TSMC's high-tech chips position the company for future growth?
TSMC's high-tech chip-on-wafer-on-substrate (CoWoS) chips position the company to benefit from any AI boom and capitalize on the anticipated growth in AI.
What are TSMC's plans for future expansion?
TSMC outlined plans to invest NT$90 billion in constructing a new advanced chip manufacturing facility in Taiwan, focusing on expanding its capabilities in the AI sector.
Can TSMC's better-than-expected sales and the increase in global semiconductor sales indicate an end to the chip market's slump?
Yes, TSMC's better-than-expected sales in the final quarter of 2023, coupled with the recent increase in global semiconductor sales, suggest a potential end to the chip market's slump.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
