Taiwan Semiconductor expects semiconductor industry's annual growth to reach 10% - report
May 23, 2024 5:59 AM ET
By: Ravikash Bakolia, SA News Editor
 BING-JHEN HONG
Taiwan Semiconductor Manufacturing (NYSE: TSM) expects an annual revenue growth of 10% for the global semiconductor industry, excluding memory chips, Reuters reported.
The company's stock was up about 3% premarket on Thursday.
Senior Vice-president Cliff Hou made the remarks at an event in Hsinchu, where the company is headquartered, the report added.
During its first quarter results in April, TSM CEO C. C. Wei warned about the overall semiconductor market growth in 2024.
"We lowered our forecast for the 2024 overall semiconductor market, excluding memory, to increase by approximately 10% year-over-year, while foundry industry growth is now forecast to be mid- to high-teens percent, both are coming off the steep inventory correction and/or base of 2023," Wei said on the company's first quarter earnings call in April.
TSM — which produces chips for some of the world's largest tech companies, including Apple ( AAPL), Nvidia ( NVDA) and AMD ( AMD) — had previously forecast a growth rate of over 10% for the global semiconductor industry, excluding memory.
However, Wei had noted that they continue to expect 2024 to be a healthy growth year for TSM.
World Semiconductor Trade Statistics expects growth of 13.1% for the global semiconductor market in 2024, according to the report.
TSM expects second-quarter sales to grow up to 30%, driven by demand for semiconductors used in AI applications. The company anticipates its business to be supported by strong demand for its 3nm and 5nm technologies.
On Wednesday, Nvidia ( NVDA) reported its quarterly results and outlook, which topped Wall Street's expectations, and also announced a 10-1 stock split. |
