Taiwanese chip giant TSMC forecasts over 20% revenue growth in 2024

Taiwan Semiconductor Manufacturing Company (NYSE: TSM), the world’s largest contract chipmaker, on Thursday projected over 20% revenue growth for 2024 driven by strong demand for its advanced chips used in artificial intelligence despite concerns over weak demand in the broader semiconductor industry.

“We are a key enabler for AI applications. So far today, everything you saw for AI comes from TSMC,” said CEO C.C. Wei at an earnings conference. “For advanced packaging, demand was very strong and TSMC can’t offer enough capacity to support customers, which will continue to next year.”

The bullish forecast comes after TSMC reported a 19% drop in fourth-quarter net profit to T$238.7 billion, beating expectations. TSMC said it plans major manufacturing expansion across Germany, Japan, Taiwan and the United States to meet booming demand for its cutting edge chips. Capital spending is expected to remain steady at $28-32 billion.

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While the chip giant saw challenges in 2023 due to high inventories, it forecasts strong growth ahead. “Revenue for 2024 should increase in the low to mid-20% range in U.S. dollar terms,” it said.

TSMC’s stock was up 7.6% at 110.79 by 15:50 GMT.