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TSM - TSMC's Overall Economics Have Limited Benefits From AI Growth
Taiwan Semiconductor Manufacturing Company Ltd.
2024-06-25 09:07:08 ET
Summary
TSMC's CEO predicts strong AI-related demand, but it is only a fraction of their overall revenue.
TSMC is a key chip manufacturer for smartphones and AI, but AI demand increases have limited benefits with respect to the overall economics.
AI revenue should eventually be more than 20% of overall revenue but this isn’t expected until 2028.
Introduction
Per my July 2023 article , TSMC ( TSM ) is the most important chip manufacturer for smartphones. Per Visual Capitalist , no fabricator (“fab”) comes close to TSMC in terms of size:
