TSMC To Post Record Q1 Revenue – AMD to Gain Double Digit AI Market Share Say Analysts

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After a year-long slump that has seen its revenue drop annually for most of the year, the Taiwan Semiconductor Manufacturing Company (TSMC) is slated to post strong first-quarter results next year, according to estimates from analysts. TSMC is the world's largest contract chip manufacturer, and the firm caters to the needs of big-ticket firms such as NVIDIA Corporation and Apple Inc. Demand for its products has been slow this year as the chip industry digests inventory ordered through optimistic forecasts. However, recent trends have indicated that the supply glut is clearing up, and more orders from its biggest customers can help TSMC touch record first-quarter revenue next year.

2023 has been a historic year for TSMC, not only because of a severe industry downturn but also because the firm successfully ramped up mass production of its advanced 3-nanometer semiconductor fabrication process. The first 3-nanometer products were shipped out earlier this year and made their way to consumers through Apple's latest smartphones and notebooks.

Apple, NVIDIA and AMD should drive up TSMC's orders in Q1 2024, according to analysts quoted by Taiwanese media. They believe the first quarter revenue could cross $18 billion in an off-season quarter to market a maximum of 8% sequential drop. The first quarter is generally the slowest for TSMC since few product launches take place in its immediate aftermath. However, the analysts believe that this time, an uptick in orders from its biggest customers will enable TSMC to post strong first-quarter revenue.

The analysts add that not only will TSMC's