Chipmaker TSMC reported better-than-expected revenue for the fourth quarter of 2023 and said this was due to increased market demand for high-performance processors for artificial intelligence. TSMC has previously been hit by falling demand as smartphone and laptop makers stockpiled processors amid a global chip shortage. By July 2023, the company reported declining profits, but the iPhone 15 is expected to help it rebound.
But according to Bloomberg, Apple’s sales performance may not be as good as expected, but TSMC’s fourth quarter profit in 2023 is still the same as in the same period in 2022.
TSMC reported quarterly profit of NT$625.5 billion (US$20.13 billion). Analyst forecasts were slightly lower, at about $19.83 billion.
CEO Wei Zhejia said that the company believes that the inventory problem has been basically solved. Not only that, the artificial intelligence demand of NVIDIA and AMD equipment has promoted the development of the company's high-performance processor business.
TSMC doesn't report its sales breakdown, so it's not known what percentage of its 2023 earnings will come from Apple. However, despite Wei Zhejia’s explanation of the overall situation of smartphones, previous reports stated that iPhone 15 still broke the sales slump in the smartphone market.
Despite lower demand for processors in 2023, TSMC continues to expand its operations in Germany, Japan and Arizona.