Shulou(Shulou.com)11/24 Report--

CTOnews.com October 3 news, New Street Research analysts believe that in the semiconductor market turmoil, chip manufacturers and designers facing a decline in orders, TSMC's prospects are still bright.

Industry headwinds have led TSMC to cut its revenue guidance twice this year, but analyst Pierre Ferragu believes the company could earn as much as $100 billion by 2025 (CTOnews.com Note: currently about 731 billion yuan).

Of all the chip companies, TSMC management made the most cautious forecasts during the earnings call, admitting that preliminary estimates of inventory adjustments in the semiconductor industry were shorter than expected, the report said. Inventory adjustment encourages TSMC customers to order more silicon wafers when they are eager to meet demand. However, as long as the market is oversupplied, orders remain low, further increasing capital expenditure because its machines cannot be produced at full capacity.

But Ferragu says the chip industry's troubles could end next year. TSMC's income statement will rebound in 2024, the analyst said in a report released on Friday. He added that 2025 could be a bumper year for the company, with TSMC's revenue reaching $100 billion for the first time.

TSMC's annual revenue as of December 2022 was $75.9 billion (currently about 554.829 billion yuan). The company expects full-year revenue to fall by about 10% in 2023 to $68.31 billion (currently about 499.346 billion yuan). Ferragu agrees with this estimate and forecasts TSMC's net sales of $68 billion in 2023.

Looking ahead, the analyst believes that product demand is about to recover, the growth of enterprise computing chip products used to run data centers and other infrastructure demand, in addition, TSMC is currently using 3-nanometer chip process to manufacture products, and plans to shift to 2-nanotechnology in 2025.

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