TSMC, which currently produces 3-nanometer chips, plans to start mass production of 2-nanometer chips in 2025. The company's shares have surged 56% in the past year due to strong demand for AI chips. TSMC accounted for 61% of global foundry revenue in Q4, with a net profit margin of 40%, significantly higher than the industry average of 14%. The company expects Q2 revenue to be between $19.6 billion and $20.4 billion. TSMC's Arizona subsidiary recently received preliminary approval for up to $6.6 billion in government funding to build advanced semiconductors, and is also eligible for about $5 billion in proposed loans.
Key takeaways:
- Taiwan Semiconductor Manufacturing Company (TSMC) beat revenue and profit expectations in the first quarter due to strong demand for advanced chips, particularly those used in AI applications.
- TSMC is the world's largest producer of advanced processors and expects 2024 to be a 'healthy' growth year, with revenue from server AI processors estimated to 'more than double this year.'
- TSMC currently produces 3-nanometer chips and plans to commence mass production of 2-nanometer chips in 2025. The company's shares have surged 56% in the past year due to strong demand for AI chips.
- The U.S. recently granted TSMC's Arizona subsidiary preliminary approval for government funding worth up to $6.6 billion to build the world's most advanced semiconductors. TSMC is also eligible for about $5 billion in proposed loans.