TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) is expected to return to strong growth in 2024, J.P. Morgan said in a note on Thursday (Jan. 4).
J.P. Morgan said it expects TSMC to be back to around 20% revenue growth in 2024, according to Investing.com. The investment bank said inventory restocking, strong AI demand, and the rapid expansion of TSMC’s 3 nm process (N3) chips to drive growth.
“Looking ahead, we believe N3 is likely to drive strong growth into 2025, while early progress on (2 nm chips) looks promising, despite market concerns about competition,” J.P. Morgan analysts said.
Amid increasing competition in the sector from Intel, J.P. Morgan said Intel outsourcing to TSMC is expected to outweigh any market share Intel Foundry Services takes away from TSMC in the next three to four years, per Investing.com.
“In the near-term, we expect TSMC to guide for 1Q24 revs to decline only 3-4% QoQ and indicate a healthy demand recovery at 2024 in its upcoming earnings conference, although GMs may remain under pressure due to higher depreciation costs, N3 dilution, and strong (NTD),” Investing.com cited analysts as saying.
