In short: Taiwan Semiconductor Manufacturing Firm simply launched its November numbers, exhibiting that it earned NT$276 billion (that is US$8.5 billion) for the month. This marks a staggering 34% enhance in comparison with the identical interval final yr.
It is no secret that a number of semiconductor companies are recording a few of their highest-ever revenues proper now, due to the demand for AI chips going by means of the roof. And TSMC’s management in cutting-edge course of nodes like 5nm and 3nm has made it a scorching commodity for AI companies and tech titans like Apple.
The corporate has been sensible too, doubling down on superior packaging tech like CoWoS (Chip on Wafer on Substrate), which is crucial for manufacturing AI processors. It is no surprise TSMC expects income to achieve $26.9 billion within the closing quarter this yr – an 11-14% quarterly bounce.
There was additionally a 12.2% slide from October’s record-breaking NT$314 billion income, although that is minor within the face of an total bumper yr. From January by means of November, TSMC amassed a mountain of income standing at NT$2.61 trillion. Do the mathematics and that interprets to a 31.8% annual progress fee. That is particularly spectacular for a yr suffering from financial turmoil that is resulted in industry-wide layoffs.
Buyers are understandably stoked, sending TSMC shares surging after the report was launched.
TSMC expects demand to solely go up from right here and is spending billions to construct new factories abroad, together with $65 billion on three vegetation in Arizona, US. The chipmaker additionally revealed within the October earnings name that its manufacturing capability for CoWoS know-how is ready to double year-over-year in each 2024 and 2025. Nonetheless, it added that demand is so robust it nonetheless cannot manufacture quick sufficient to fulfill it.
Not everyone seems to be satisfied concerning the sustainability of demand sooner or later, although.
Large tech’s large AI investments are but to pay dividends, so some buyers are understandably anxious that the spending bonanza will fizzle out. That does not appear to be stopping TSMC although, particularly since rivals like Samsung and Intel are struggling to compensate for the leading edge.