TSMC halts revenue drop, beats expectations on brisk demand for AI chips from Nvidia, Advanced Micro Devices
- The Hsinchu-based company reported a NT$625.5 billion quarter, matching earnings from the same period a year earlier
- While it outdid analyst expectations and its own guidance, TSMC’s US$20.2 billion quarter still fell short of delivering growth
Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chip maker, saw its fourth-quarter revenue beat estimates of a decline, as demand from artificial intelligence (AI) players helped offset sluggish smartphone and laptop chip sales.
Hsinchu-based TSMC, the main chip supplier to Apple and Nvidia, reported December sales of NT$176.3 billion (US$5.7 billion), completing a NT$625.5 billion quarter.
That matched earnings from the same period a year earlier, which was among TSMC’s highest quarterly results. The average analyst estimate for sales over the last three months was NT$616.2 billion.
Over the course of 2023, TSMC moderated its capital expenditure plans as the consumer electronics industry grappled with a glut of unsold inventory. The chip maker signalled the trough in demand had been reached in the summer and recovery would begin to take hold in the months leading up to 2024.
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Overall revenue declined 4.5 per cent last year, to NT$2.16 trillion.
While it outdid analyst expectations and its own guidance, TSMC’s US$20.2 billion quarter still fell short of delivering growth. December sales were down 8.4 per cent on the same month a year earlier, offering a mixed outlook for the year ahead.
