18 April 2024
If you are covering Taiwan Semiconductor Manufacturing Co's latest results, please see the following comment from Ben Barringer, technology analyst at Quilter Cheviot:
“Taiwan Semiconductor Manufacturing Co (TSMC) posted a good, but not perfect, print this morning, roughly in line but slightly clipping expectations. Revenues were a little better than expected, as was profitability. However, TSMC referenced the impact of earthquakes and particularly electricity prices on its margins.
“TSMC maintained its guidance, with high performance computing and AI still very strong, but took a more cautious view on other areas. TSMC pointed to particular weaknesses in smartphone, with Apple its biggest customer, and also highlighted incremental weakness in automotive.
“Artificial intelligence was unsurprisingly a standout, with TSMC expecting it to form a much greater percentage of revenues in the coming years, rising from 13% this year to around 20% in three or four years’ time.
“Capital expenditure was maintained as had been expected, continuing with the three fabs in Arizona, building in Japan to support a large consumer electronics company, and building a fab in Germany to support automotive industrial. TSMC also confirmed its 2nm node is progressing well, but there was no comment on exactly when it will be buying the extra tools from ASML.”
