Semiconductor large TSMC introduced on Thursday a virtually 9% rise in internet earnings within the first quarter of 2024 spurred by world demand for its microchips used to energy every thing from cell phones to AI know-how.
The Taiwan Semiconductor Manufacturing Company (TSMC), whose shoppers embody Apple and Nvidia, controls greater than half the world’s output of silicon chips, which have been referred to as the “lifeblood” of the trendy world.
The firm mentioned Thursday that its internet revenue elevated 8.9% on-year in January-March to NT$225.4 billion ($6.97 billion) in comparison with NT$206.9 billion in the identical interval final 12 months.
First-quarter revenues additionally rose 13% year-over-year to $18.87 billion, it mentioned.
CFO Wendell Huang additionally mentioned throughout an earnings name Thursday that TSMC expects its second-quarter revenues to extend by 27.6%.
The TSMC, which produces among the most superior microchips on the earth, dominates the chip-making business, in addition to its buyer U.S.-based Nvidia.
The bulk of its fabrication crops making its most high-tech merchandise are primarily based in Taiwan, which can be susceptible to pure disasters like earthquakes, which at occasions raises issues over provide challenges.
Earlier this month, an enormous magnitude-7.4 quake hit Taiwan and “a certain number of wafers in the process were impacted and had to be scrapped,” Huang mentioned.
“But we expect most of the lost production to be recovered in the second quarter and thus minimum impact to the second quarter revenue,” he mentioned.
‘Significant progress’
The agency had additionally earlier this month introduced plans to construct a 3rd semiconductor manufacturing unit in Arizona – including to the 2 fabrication models already in progress there.
The preliminary settlement with the U.S. Commerce Department – tied to a serious funding regulation referred to as the Chips and Science Act – would see TSMC receiving as much as $6.6 billion in direct funding from the U.S. authorities.
That would elevate its complete funding within the United States to $65 billion.
“In Arizona, we have received the strong commitment and support from our U.S. customers and plan to build three fabs … We have made significant progress in our first fab, which has already entered engineering wafer production in April,” mentioned CC Wei, the corporate’s CEO.
“We are well on track for volume production in the first half of 2025.”
He added that the second fab in Arizona has been upgraded “to utilize 2-nanometer technologies to support the strong AI-related demand in addition to the previously announced 3-nanometer” chips.
TSMC’s tasks in Arizona have confronted some obstacles previously 12 months, which the corporate had attributed to an absence of human assets, as making microchips requires a extremely specialised skillset.
But if profitable, the TSMC fabs in Arizona can be the “first time” that super-advanced chips shall be made on American soil, mentioned U.S. Commerce Secretary Gina Raimondo earlier this month.
The firm had additionally in February launched a brand new $8.6 billion plant within the southern Japanese island of Kyushu – a coup for Japan because it vies with the United States and Europe to woo semiconductor corporations with big subsidies.
It can be planning one other facility in Kumamoto for extra superior chips.
Source: www.dailysabah.com
