However, TSMC has revised its expectations for semiconductor market growth down for 2024, and cut growth predictions for foundries. Despite strong AI demand, recovery in smartphone and PC applications is slowing. TSMC recently received $6.6 billion in U.S. CHIPS and Science Act funding for its first major U.S. chipmaking hub in Phoenix, Arizona, with plans to build a third facility.
Key takeaways:
- Taiwan Semiconductor Manufacturing Company (TSMC) predicts its Q2 sales to rise by up to 30%, with revenue expected to be between $19.6 billion and $20.4 billion, beating estimates of $19.1 billion.
- TSMC plans to spend up to $32 billion this year, with a majority going towards advanced technologies due to high demand for chips in the AI industry.
- TSMC reported sales of NT$592.6 billion, or $18.5 billion, for Q1 2024, a 16.5% YoY increase in its March-quarter revenue, beating revenue expectations of NT$579.5 billion, or $18.1 billion.
- TSMC received $6.6 billion in U.S. CHIPS and Science Act funding for its first major U.S. chipmaking hub in Phoenix, Arizona, and plans to use some of the new funding to build a third facility, increasing the company’s investment from $40 million to $65 million.