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Apple chip supplier TSMC expects a return to ‘healthy growth’, backing hopes for global tech recovery in 2024
- TSMC, the world’s largest contract chip manufacturer, projected revenue growth of at least 8 per cent to US$18.8 billion in the March quarter
- The Taiwanese company’s outlook comes after a years-long slump in tech demand
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Taiwan Semiconductor Manufacturing Co (TSMC) expects a return to solid growth this quarter and gave itself room to raise capital spending this year, suggesting the world’s most valuable chip maker anticipates a recovery in smartphone and computing demand.
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The main semiconductor supplier to Apple and Nvidia Corp projected revenue growth of at least 8 per cent to US$18.8 billion in the March quarter, versus expectations for around US$18.2 billion. It is also budgeting capital expenditure of US$28 billion to US$32 billion, potentially up from US$30 billion in 2023.
The Taiwanese company’s outlook, while not quite surpassing the most bullish estimates, comes after a years-long slump in tech demand. But signs of a recovery for the chip-making sector have emerged in recent weeks. The Semiconductor Industry Association estimated chip sales increased in November after more than a year of declines.
TSMC chief executive C C Wei reiterated that he expects a return to “healthy growth” this year.
TSMC, which also counts Android chip design firm Qualcomm among its biggest customers, got a boost from frenzied demand for Nvidia’s artificial intelligence (AI) processors in 2023.
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It reported net income for the fourth quarter of NT$238.7 billion (US$7.6 billion), beating the average analyst estimate. Revenue was US$625.5 billion, TSMC reported earlier, matching the previous holiday quarter and arresting a series of falls.
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