[News] TSMC Q1 2024 Earnings Call Highlighted Two Major Revisions

---

---

TSMC held an earnings call on April 18, where it highlighted two significant revisions. The company revised down its annual growth expectations for the global foundry industry and shifted its outlook on automotive growth from positive to declining.

When asked about the outlook for end applications and the differences from three months ago, C.C. Wei stated that the differences appear minimal. However, while the previous forecast anticipated growth in automotive for the full year, it is now expected to decline.

In the previous earnings call in January, C.C. Wei mentioned that TSMC was expected to achieve healthy growth in 2024, with revenue growth surpassing the global foundry industry’s average of 20%, projected to range from approximately 21% to 26%.

In the latest earnings call, TSMC adjusted the forecast for the 2024 semiconductor market (excluding memory) to increase by about 10% year-over-year, with the foundry industry growth expected to be in the mid-to-high teens percent range. These adjustments follow a steep inventory correction and low base in 2023. Despite this, TSMC believes that 2024 is still anticipated to be a strong growth year for them.

Industry sources cited by Economic Daily News believe that the main reasons for these forecasts are the slower recovery of mature process applications and automotive demand.

Regarding the challenges faced by mature processes in competition, C.C. Wei mentioned that collaboration with customers on mature processes focuses on developing special processes. He expressed confidence that such collaboration can continue to thrive even in the face of industry oversupply.

Read more

• [News] TSMC Q1 Earnings Beat Expectations, While Eying Up to 8% Revenue Growth in Q2
• [News] TSMC Reportedly Accelerates 2nm Progress, with Kaohsiung Plant Rumored to Commence First Tool-in by Year-end

(Photo credit: TSMC)