Taiwan Semiconductor Poised for Double-Digit Revenue Growth in 2024 Amid Strong HPC Demand

TSMC

Semiconductor giant Taiwan Semiconductor Manufacturing Company (TWSE: 2330, NYSE: TSM) is projected to achieve a double-digit revenue growth rebound in 2024, driven by a continued cyclical recovery in semiconductors and rising demand for AI chips, according to analysts. The company’s first-quarter net sales revenue experienced a sequential decline of -5.3% in NT dollars. This decline was primarily driven by a sequential decrease of -16.3% in the company’s smartphone business.

Based on Visible Alpha consensus, however, TSMC’s net sales revenue is expected to grow sequentially by +9% in NT dollars in the second quarter of fiscal 2024, reaching NT$646 billion. For the full year, analysts forecast a double-digit revenue increase of +26% year over year, totaling NT$2.7 trillion. This growth is mainly driven by the high-performance computing (HPC) segment, which is expected to grow by +35% year over year in NT dollars in 2024, a significant improvement over the modest +0.3% growth in 2023. Following the sharp decline in the first quarter, TSMC’s smartphone segment is also projected to recover, with full-year revenue growth estimated at +22% in NT dollars.