TSMC's Strong Performance and Global Expansion Strategy

TSMC proves its dominance by boosting revenue outlook and expanding global chip production amid industry uncertainty.

### TSMC's Strong Market Position and Growth Prospects Amidst Chip Industry Challenges
* 📈 TSMC, or Taiwan Semiconductor Manufacturing Company, is making headlines as its US-listed shares reach their **highest level since 1997**, reflecting **strong market confidence**.
* 💰 The company's revenue growth outlook for 2024 has been **boosted by approximately 30% in dollar terms**, indicating a **positive trajectory for the chip industry**.
* 🔍 TSMC stands out as a leading contract manufacturer, producing **essential high-performance GPUs**, and easing previous anxieties around **hardware and chip production**.
* 📊 Following a concerning ASML report about lower-than-expected bookings in the chip industry, TSMC's strong performance has reassured investors about the **insatiable demand for AI technology**.
* 💬 CEO C.C. Wei emphasized the strength of demand during a recent earnings call, stating, "**the demand is real**," which has bolstered confidence in TSMC's market position.
* 🌍 TSMC is also increasing its capital expenditures outlook for 2025, focusing on building manufacturing plants not just in Taiwan but **globally**, including in the **US, Japan, and Europe**.
* 🏭 This shift in production strategy responds to supply chain disruptions experienced during the COVID pandemic, as countries seek to **secure local chip production**.
* 🤝 TSMC's commitment to **expanding its manufacturing capabilities globally** is seen as a significant move to **meet the growing demand for chips** while supporting **domestic markets**.

TSMC is our top story. Taiwan Semiconductor Manufacturing. These are the ads. The US-listed shares. They are big. In fact, the shares are trading at their highest level since 1997 when they first started trading in the United States. The outlook for revenue growth for 2024 is boosted about 30% in dollar terms. And the big picture is that we kind of feel better about the outlook for the chip industry in general. Why TSMC is the contract manufacturer to the world. They make the most important chips that we care about, namely those high-performance GPUs in the context and post-ASML. We had a lot of anxiety around hardware and chip making, but doesn't seem like it's there right now because Bloomberg's Peter Strong can join us from London for more. And Peter, just give us that context of what TSMC manages to prove to the market. That really echoing in video, the demand is insatiable. That's right.

Caroline, as you alluded to, all eyes were on TSMC after this ASML report. The Dutch equipment company came out and said that bookings in the chip industry were only about half of what analysts had been expecting. And that really startled the industry. Nvidia's stock was down, and everybody was wondering who was the weak player in the industry, which company is which chip company is struggling. And now we know it's not TSMC. TSMC has done very, very well here. They boosted their guidance, they beat earnings estimates, and they reassured the market really that demand for AI in particular is very, very strong at this point. C.C. Wei, the CEO, got a lot of questions in the call after results about that, and he said that the demand is real. He called it in saying at one point he said it's very, very strong at this point. So that's there's a reassurance play.

that's going on here, too. Peter, TSMC boosted its capital expenditures outlook for 2025. Why is that important? Well, it's partly important because ASML is the company that sells the chip-making machines to all these companies. TSMC is the most advanced producer of these chips. And so there is a question about who's going to buy these machines from ASML and then others in the industry. We know that a couple of the key players are struggling right now. Intel and Samsung are both having quite a bit of trouble. TSMC appears to be doing very well, partly because of it in video. They also supply the chips to Apple, which is trying to sell its phones in part because of their A.I. capabilities. So we're seeing this bifurcation in the market right now where you have some weak players, some struggling quite a bit, and then you have some like TSMC, like in video, like S.K.

Hynix in Korea too, that are doing very well, and TSMC committing to capital expenditure globally. Right. They're going to be building out manufacturing, not just in Asia where you usually sit. That's a very important point. For many decades, TSMC only produced its chips within Taiwan. It felt it was easier to kind of concentrate all its production in one place. And over the past few years, we've seen that business model really evolve, where they've been asked by the U.S., by Europe, by Japan to build these chip-making plants in their domestic markets, partly because of the supply chain shocks that we saw during the COVID pandemic. All these countries want to make sure that they can get those chips. TSMC is the best chip maker out there, so they want TSMC to come to the United States, to Japan, to Europe and beyond to try to make those chips and make sure that they're being produced locally.

So far, that model seems to be working pretty well.

TSMC Forecasts Lifts Chips

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TSMC's Strong Performance and Impact on the Chip Industry

TSMC's US-listed shares are at their highest level since 1997, with a 30% boost in revenue growth outlook for 2024.

The company has proven to be resilient amidst industry challenges, beating earnings estimates and boosting guidance.

TSMC's CEO reassured the market with a strong demand for AI, highlighting the company's crucial role in chip manufacturing.

TSMC's Capital Expenditure Boost and Global Expansion

TSMC has raised its capital expenditures outlook for 2025, which is significant for the chip-making industry.

The company is thriving while key players like Intel and Samsung are struggling.

TSMC's global expansion, driven by requests from the U.

, Europe, and Japan, aims to build chip-making plants in domestic markets and address supply chain challenges.

The model has been performing well in its tasks.

It has shown consistency and reliability in providing accurate summaries.

Overall, the approach seems to be successful in meeting its objectives.