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The world’s greatest deal chipmaker Taiwan Semiconductor Production Company on Thursday posted much better-than-anticipated earnings and profits on the back of weaker macroeconomic conditions.
Right here are TSMC’s fourth-quarter outcomes compared to LSEG consensus estimates:
- Revenue: 625.53 billion New Taiwan bucks ($19.62 billion), vs. NT$618.31 billion expected
- Web money: NT$238.71 billion, vs. NT$225.22 billion envisioned
TSMC documented earnings slipped 1.5% from a yr back to NT$625.53 billion, though web cash flow dropped 19.3% from a calendar year in the past to NT$238.71 billion. That compares with TSMC’s direction for fourth-quarter profits between $18.8 billion and $19.6 billion.
TSMC counts Apple and Nvidia among its major purchasers. TSMC makes the most advanced processors found in Apple’s iPhones.
“In the fourth quarter, income elevated 14.4% sequentially [from the third quarter], supported by the ongoing robust ramp of our marketplace-primary 3-nanometer technological innovation,” claimed TSMC in its fourth-quarter earnings report.
Chipmakers these kinds of as Samsung Electronics and SK Hynix have described declines in quarterly revenue owing to a article-pandemic plunge in the demand from customers for client electronics like smartphones and laptops. That resulted in smartphone and Pc makers grappling with extra inventories of chips.
But analysts say chip inventories at smartphone and Computer makers are working down and count on restocking demand to decide on up.
In its third-quarter earnings report in October, TSMC claimed that its small business was supported by the market-foremost 3-nanometer technological innovation and higher desire for 5-nanometer technologies, partially offset by customers’ ongoing stock adjustment.
“TSMC’s strong ramp-up in N3 and AI purposes positions it as a main beneficiary in AI semiconductors,” Brady Wang, affiliate director at Counterpoint Research, mentioned Tuesday. N3 refers to TSMC’s most sophisticated node, which generates 3-nanometer chips.
“Nanometer” in chips refers to the size of unique transistors on a chip. The scaled-down the size of the transistor, the far more of them can be packed onto a solitary semiconductor. As this sort of, more compact nanometer sizes typically yield additional potent and economical chips.
“The predicted surge in AI-based Laptop purposes in 2024 underscores TSMC’s very important role, solidifying its dominance and ideal positioning in supplying innovative 5-nanometer and 3-nanometer systems for AI-increased computing products,” claimed Wang in a observe on Jan. 16.
TSMC at the moment manufactures 3-nanometer chips and plans to commence 2-nanometer mass output by 2025.
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