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By Wen-Yee Lee and Religion Hung
TAIPEI (Reuters) – Taiwan Semiconductor Manufacturing Co, the principle international producer of superior chips utilized in synthetic intelligence purposes, is predicted to report a 58% leap in fourth-quarter revenue on Thursday due to surging demand.
The world’s largest contract chipmaker, whose prospects embody Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), has benefited from the megatrend in direction of AI. However the Taiwanese firm faces headwinds from U.S. authorities expertise restrictions on China and uncertainty about President-elect Donald Trump’s incoming administration, which has threatened broad import tariffs.
TSMC is about to report a web revenue of T$377.95 billion ($11.41 billion) for the quarter ended Dec. 31, in accordance with a LSEG SmartEstimate drawn from 22 analysts. SmartEstimates give higher weighting to forecasts from analysts who’re extra persistently correct.
That estimate compares to the 2023 fourth-quarter web revenue of T$238.7 billion.
TSMC final week reported a soar in fourth-quarter income in Taiwan {dollars}, comfortably beating market expectations. The corporate provides its income outlook in U.S. {dollars} on its quarterly earnings name, scheduled for 0600 GMT on Thursday.
Brett Simpson, Arete Analysis co-founder and senior analyst, stated 2025 might be one other 12 months the place TSMC’s progress is basically pushed by AI prospects.
“From the U.S. authorities perspective, Arete is optimistic that TSMC can construct a superb relationship with the brand new administration significantly given its new fab cluster in Arizona is the largest international direct funding venture within the U.S. at current,” he added.
TSMC is spending billions of {dollars} on new factories abroad, together with $65 billion on three crops within the U.S. state of Arizona, although it says most manufacturing will stay in Taiwan.
Edward Chen, chairman of Fubon Monetary’s securities funding unit, stated progress on the Arizona fab and its yield charges, or the share of usable chips, can be essential for the corporate.
“Moreover, the influence of tariffs to be imposed by the incoming Trump administration on demand stays to be seen,” he added.
TSMC, at its earnings name, will replace its outlook for the present quarter in addition to for the complete 12 months, together with deliberate capital expenditure because it races to increase manufacturing.
On its final earnings name in October, TSMC stated capital expenditure was more likely to be increased in 2025 than final 12 months, although it didn’t present a determine.
On the decision, it predicted 2024 capital expenditure as being barely increased than $30 billion.
The AI increase has helped drive up the value of shares in Asia’s most beneficial firm, with TSMC’s Taipei-listed inventory hovering 81% final 12 months, in contrast with a 28.5% achieve for the broader market.
($1 = 33.1280 Taiwan {dollars})
