Home » Taiwan TSMC’s sales will increase significantly in the second quarter “Insatiable demand for AI” | Reuters

Taiwan TSMC’s sales will increase significantly in the second quarter “Insatiable demand for AI” | Reuters

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Taiwan TSMC’s sales will increase significantly in the second quarter “Insatiable demand for AI” | Reuters

Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), the world‘s leading semiconductor contract manufacturer, announced its first quarter results on the 18th, with net profit increasing 9% from the previous year, exceeding market expectations. The photo was taken in January 2021 in Hsinchu, Taiwan (2024 Reuters/Ann Wang)

[台北 18日 ロイター] – Taiwan Semiconductor Manufacturing Co. (TSMC) (2330.TW), the world‘s leading contract manufacturer of semiconductors, said on the 18th that it expects sales to increase by up to 30% in the second quarter. This is due to increasing demand for semiconductors for artificial intelligence (AI).

The company expects second-quarter sales of $19.6 billion to $20.4 billion. In the same period last year, it was $15.68 billion.

“Nearly all AI innovators are working with TSMC to meet the insatiable demand for AI,” CEO Wei Zhejia said during the first quarter’s earnings conference. “It’s being done.”

“Demand for AI-related data centers is very, very strong,” he said, calling the move from traditional servers to AI servers a “favorable” development for the company.

According to TSMC, AI servers are expected to account for around 10% of total sales this year. This is more than double last year’s level and is expected to exceed 20% by 2028.

Demand for automotive semiconductors this year is expected to decrease compared to previous forecasts.

According to the company, strong demand for cutting-edge 3-nanometer and 5-nanometer technologies will support its performance in the second quarter. However, demand for smartphones is expected to be sluggish.

The outlook for capital spending this year remains unchanged at $28 billion to $32 billion. 70-80% of the total will be invested in advanced technology. Last year’s capital investment was $30.45 billion.

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This year’s sales are expected to grow in the low-to-mid 20% range in dollar terms.

The company’s first quarter results announced on the 18th showed a 9% increase in net profit from the previous year, exceeding market expectations. Demand for semiconductors for AI provided a tailwind.

Net profit was NT$225.5 billion (US$6.97 billion). In the same period last year, it was NT$206.9 billion.

Analysts’ forecasts compiled by LSEG were NT$218.1 billion.

Sales rose 13% from the previous year to $18.87 billion, exceeding the company’s forecast of $18.0 billion to $18.8 billion. The company announced last week that the amount was NT$592.64 billion, denominated in Taiwanese dollars.See more

Capital investment was $5.77 billion. In the fourth quarter of last year, it was $5.24 billion.

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