TSMC surpassed analysts’ expectations with its first-quarter earnings

TSMC, the world’s leading chip manufacturer, surpassed analysts’ expectations with its first-quarter earnings, primarily driven by heightened demand for high-performance chips utilized in artificial intelligence applications. However, the company noted that chip sales were constrained by a slower-than-expected recovery in demand from the smartphone and PC sectors.

The net profit for the quarter stood at NT$225.49 billion (US$7.2 billion), marking an 8.9% increase compared to the previous year, propelled by the surge in demand for AI-powered chips. Revenues surged by 16.5% to NT$592.6 billion, aligning with the upper range of the company’s projections. In terms of US dollars, first-quarter revenue rose by 13% year-on-year to $18.87 billion, albeit experiencing a 3.8% decline from the previous quarter.

While acknowledging the impact of smartphone seasonality on their first-quarter performance, TSMC’s chief financial officer, Wendell Huang, highlighted the sustained demand stemming from high-performance computing (HPC) applications, particularly in the realm of generative AI and cutting-edge technologies.


Looking ahead to the second quarter of 2024, CEO CC Wei expressed optimism regarding the company’s prospects, anticipating robust demand for its advanced 3nm and 5nm technologies. However, Wei also cautioned about the potential impact of ongoing macroeconomic and geopolitical uncertainties on the global consumer electronics market. Despite forecasting revenue growth to reach US$19.6-20.4 billion for the current quarter, TSMC remains vigilant in navigating the evolving market dynamics and external challenges.

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