TSMC’s anticipated earnings for upcoming years is thought to decrease amidst issues about wafer output and the business’s strategies to “postpone” its production procedures.
TSMC Is Focusing on Diversifying Existing Chip Plants Through Taiwanese Equipment, Leading to a Temporary Drop in Wafer Output
The news originates from the monetary company Goldman Sachs Securities, which has actually anticipated a 10% drop in TSMC’s anticipated income in 2024. The driving factor behind the analysis is the drop in TSMC’s share rates on 15th September, after news emerged (by means of Reuters) that TSMC had actually supposedly informed its significant sophisticated chip devices provider ASML to postpone shipments due to “unidentified” factors.
Neither the Taiwanese giant nor the Dutch producer has actually divulged a factor behind the relocation; nevertheless, it is declared that TSMC prepares to bring “variety” within its international factory.
Goldman Sachs forecasts a constant earnings in 2023, preserving $31.6 Billion United States with no variations. The company does anticipate a drop in 2024, decreasing by 23% from $28 billion to $25 billion. A lower wafer output likewise follows the income decrease, as Goldman Sachs specifies that the 3nm wafer capability usage rate is anticipated to witness a considerable drop. For FY24-25, wafer output is set to reach 70,000 to 80,000 regular monthly.
Regardless of the decrease in different sectors, Goldman Sachs is still positive about its position in the market considering that it has actually developed a monopoly, specifically in the HPC and AI sectors. Presently, TSMC remains in the race towards being the biggest provider of chips in the market, and the Taiwanese giant is concentrated on dealing with the requirements of its important customers like NVIDIA. At the exact same time, the drop anticipated by Goldman Sachs does not define a driving factor; it might be that TSMC prepares to diversify its supply chain by making use of internal production devices.
TSMC is presently in a reputable position no matter the financial signs, and our company believe it is set to witness rapid YoY development, considered that the order volume it presently experiences preserves at a stable level.
News Source: Ctee