TECH - TSMC Cautions Red-Hot Chip Industry Growth Could Cool Amid Declining Automotive Chip Demand | Benzinga
Taiwan Semiconductor (NYSE:TSM) has cautioned that the red-hot growth in the chip industry might be cooling down, citing a potential decline in automotive chip demand.
What Happened: The world’s largest chipmaker, TSMC, has revised its growth forecast for the chip market, excluding memory chips, to 10%, down from the previous projection of “more than 10%,” the company said in a post-earnings call.
The company’s CEO, C.C. Wei, attributed this shift to a potential decrease in demand for automotive chips, a sector that TSMC had previously anticipated would continue to grow throughout the year.
“Looking at 2024, macro economy and geopolitical uncertainties persist, which could further affect consumer confidence and end-market demand,” CEO Wei said on the analyst call.
Despite these concerns, TSMC is optimistic about its own future, projecting a potential 30% increase in second-quarter sales.
Wei emphasized the strong demand for AI-related chips, which are expected to account for a significant portion of TSMC’s revenue in the coming years.
TSMC’s role as a ...