Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), a major contract manufacturer of semiconductors, has lowered its growth forecast for this year’s semiconductor market, citing weak sales of smartphones and personal computers (PCs).
The forecast is for the semiconductor market (excluding memory chips) to grow by approximately 10% in 2024, lower than the previous forecast, which was expected to exceed this. CEO Wei Zhejia also lowered the growth outlook for the foundry sector, in which TSMC is the leader.
“Macroeconomic and geopolitical uncertainties persist, which could weigh on consumer sentiment and end-market demand,” CEO Wei said on a conference call with analysts. On the US stock market on the 18th, TSMC’s American Depositary Receipts (ADRs) temporarily fell 6.3%, marking the largest intraday decline in about a year.
The January-March (first quarter) financial results announced by TSMC are favorable, with the sales forecast for April-June exceeding market expectations, and the semiconductor manufacturer is enjoying a tailwind from artificial intelligence (AI)-related demand. I reconfirmed. However, this downward revision to the market outlook highlights the division among semiconductor manufacturers between those that design and manufacture cutting-edge chips for AI processing and those that produce chips for consumer products. do.
TSMC sales forecast exceeds market expectations, AI contribution – capital investment left unchanged
Original title:TSMC Lowers Chip Market Outlook as Consumer Weakness Persists(excerpt)