[News] TSMC’s Earnings Conference on the 18th, Market Focuses on Eight Key Points

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According to Commercial Times, TSMC, the leading semiconductor foundry, will hold its investor conference on the 18th. Market attention will be focused on eight key questions, including the 2024 full-year revenue forecast, advanced process development, and progress in overseas facility expansion.

Key points of interest for investors include: 1. TSMC’s 2024 full-year gross margin trends and changes in the first and second quarter gross margins. 2. Intel’s aggressive pursuit of advanced processes and how TSMC views it. 3. Chairman Mark Liu’s announcement of retirement in 2024 and whether TSMC’s overseas expansion plans will change. 4. Strategies for expanding advanced packaging production capacity. 5. Annual capital expenditures. 6. Views on the semiconductor industry’s recovery. 7. Trends in utilization rates for each process. 8. Full-year revenue outlook.

The market is closely watching TSMC’s first-quarter gross margin. Morgan Stanley semiconductor industry analyst Charlie Chan pointed out that due to the price reduction for 3-nanometer process foundry services provided to Apple, coupled with the recent appreciation of the New Taiwan Dollar against the U.S. Dollar and accelerated depreciation, TSMC’s gross margin for 2024 is under pressure.

According to industry sources, TSMC may slightly slow down the transition from 5-nanometer to 3-nanometer process equipment this quarter. The lowest point in the annual gross margin may fall in the second quarter, rather than the originally estimated first quarter, meaning that TSMC’s quarterly gross margin will not experience a cliff-like plunge.

As for TSMC’s full-year revenue outlook, after Goldman Sachs and UBS Securities expressed optimism about TSMC’s revenue growth exceeding 20% for the year, JPMorgan Securities also noted that, driven by inventory replenishment, AI demand, and the expansion of the 3-nanometer process, TSMC’s revenue is expected to grow by 20% in 2024. The acceleration from AI accelerators and system-on-chip (SoC) for smartphones will lead to better-than-expected capacity utilization rates for the 5-nanometer and 4-nanometer processes.

(Image: TSMC)