All data are based on the daily closing price as of May 24, 2024

TSMC CEO C.C. Wei: PC and Smartphone Chip Demand Stabilizes, Auto Chip Demand to Rebound in 2024

Taiwan Semiconductor Manufacturing Co. (TSMC) notes a stabilization in PC and smartphone chip demand, while automotive chip demand may rebound in 2024
Taiwan
t 2330.TW Semicon 75 Tech 350 Blue Chip 150
Share this on

In a recent earnings call, C.C. Wei, CEO of Taiwan Semiconductor Manufacturing Co. (TSMC), stated that the demand for chips in personal computers and smartphones is showing signs of stabilization after a prolonged downturn, though he cautions against expecting a sharp rebound just yet. However, demand for chips in the automotive sector has begun to slow down, with a predicted rebound in 2024. While global smartphone shipments have experienced a sharp decline, demand for artificial intelligence and high-performance computing remains robust. Wei expresses optimism for “healthy growth” in the coming year. Regarding the impact of recent U.S. export controls, Wei believes it will have limited short-term effects, but long-term consequences are still being evaluated. The U.S. government’s tightened export controls are expected to affect major TSMC clients like Nvidia and Advanced Micro Devices. Wei acknowledges competition from Intel, emphasizing TSMC’s technological advantages. Founder Morris Chang had previously warned of intense competition, particularly from rivals like Intel. TSMC reported a 24.8% drop in net profit for July-September, and a 10.8% decrease in revenue. Looking ahead, the company anticipates revenue for the fourth quarter to be between $18.8 billion and $19.6 billion, slightly lower than the previous year but still surpassing market estimates. Analysts predict TSMC’s return to growth in 2024 and 2025, partly attributed to chip production for Intel.

Share this on
Jakota Newsletter

Stay ahead in the JAKOTA stock markets with our roundup of vital insights

Icon scroll to top