The Taiwan Semiconductor Manufacturing Company (TSMC) is slated for potentially explosive revenue growth next year, according to estimates from the research firm Omdia. TSMC, like other firms in the semiconductor industry, has been at the center of a slowdown in sales as the market adjusts and recovers from the disruption from the coronavirus pandemic and a tough macroeconomic environment that has affected purchasing powers of both general and corporate customers. However, for TSMC, the trend appears to be reversing, and Omidia's analysis believes that the firm's growth will pick up again next year.
Semiconductor Fabrication Capacity Utilization Expected To Bottom Out By June End Believes Research Firm
TSMC, which releases monthly revenue figures to provide closer insights into its operations, reported healthy May results that increased optimism about the current state of the firm's market. As the world's leading contract chip manufacturer, the Taiwanese firm is slated to benefit heavily from the current wave of artificial intelligence (AI) products making their way into the hands of businesses. Some analysts believe that this boost, aided particularly by expected good fortune for NVIDIA Corporation, can enable TSMC to recover lost revenue later this year.
The May results showed that TSMC had raked in NT$176 billion in revenue, which marked a 19% sequential growth. Historically, this growth was more than three times the historical growth rates for May - when the firm's revenue typically slows down. Year to May, the revenue shrank by a mere 1.9%, even as chip design firms like Intel continue struggling with a slow market.
Overall, analysts expect that TSMC's revenue for June can drop by anywhere between 8.5% to 22%. Apple's order pickup for the second half of 2023 is expected to aid the firm in recovering from its downturn, and Omdia adds to the chorus of a recovery.
During its technology symposium in Taiwan, an analyst from the firm shared that TSMC will benefit from increasing the prices of its advanced manufacturing technologies next year. This will help the firm grow its revenue, which is expected to sit at 22.5%. As for the ongoing inventory correction that has led firms like AMD and NVIDIA to navigate through shipping fewer products to retailers to give buyers a chance to buy existing units, it is different across different firms, such as integrated circuit (IC) design companies and end product manufacturers - in a classic illustration of the bullwhip effect.
Rumors of a TSMC price increase in 2024 have surfaced previously, with the latest coming earlier this month. These claimed that TSMC could increase its prices by as much as 6%, with the final decision depending on a multitude of factors such as the customer and the factories producing the products.
As for the wafer foundries, Omdia believes that they will struggle this year. Operating growth will be slow to pick up, and the capacity utilization will also be slow to recover as well. Utilization refers to the percentage of machines in a foundry operating at capacity, and higher utilization reduces a firm's capital costs. 2023 will be a tough year, and overall, pure play foundries can expect to see revenue drop by 8.9% this year. However, in 2024, growth can rebound to 21.7% in 2024, with TSMC's price increases allowing it to lead the pack with 22.5% revenue growth.
Refference- https://wccftech.com
0 Comments