TAIPEI: Taiwanese chipmaker TSMC posted a smaller-than-expected 25 per cent fall in third-quarter net profit on Thursday (Oct 19) and said it sees signs of stability, raising hopes that a slowdown in the semiconductor industry is poised for recovery.
The world’s largest contract chipmaker was upbeat about the year ahead, predicting healthy growth and a drop in industry inventory levels.
Demand for personal computers and smartphones, two of the tech giant’s business drivers, are expected to lead its recovery, along with artificial intelligence growth continuing to fuel demand for TSMC’s advanced chips and advanced packaging.
“We can expect 2024 to be a healthy growth year for TSMC,” CEO C.C. Wei told an earnings briefing, with the company expecting to “do better than the overall industry” next year.
“In these couple of months, we have started to see demand stabilise in the PC and smartphone end market” and inventory controls have become “more healthy than we thought”.
“Right now, do we see the bottom? Very close,” Wei said, adding: “It is too early to call it a sharp rebound.”
Investors have been closely watching for any signs to better gauge the strength of any recovery, as TSMC’s key supplier ASML warned of flat 2024 sales on Wednesday, citing caution by chipmakers in new investment.
Source: CNA
