Wafer foundry leader TSMC (2330-TW)(TSM-US) held a meeting today (12th), President Wei Zhejia said that the US dollar revenue in the first half of the year will decline by 4-9% compared with the same period last year, but it is optimistic that as the customer’s inventory depletion comes to an end, the operation will pick up in the second half of the year, and the US dollar revenue will It will grow compared to the same period last year, and will grow slightly throughout the year, which is better than the overall industry average.
Wei Zhejia pointed out that the terminal demand continues to be weak, and the data center demand is also weakening. It is estimated that the US dollar revenue in the first half of the year will decline by 4-9% compared with the same period last year. However, we have seen signs of demand stabilization and will continue to observe other signal.
Wei Zhejia is optimistic that the semiconductor supply chain inventory will be significantly reduced in the first half of the year to balance it to a healthier level. It is expected that the industry will bottom out in the first half of the year, and it is expected to recover steadily in the second half of the year. TSMC’s US dollar revenue will also grow compared with the same period last year.
Wei Zhejia believes that customer inventory reached its peak in the third quarter of last year and gradually declined in the fourth quarter. Recently, we have seen a sharp correction in customer inventory. As the inventory continues to be reduced, we are confident that operations will recover in the second half of the year. I am not sure whether the industry is V Type reversed, but definitely not U-shaped.
Looking at the overall industry, Wei Zhejia said that TSMC predicts that this year’s semiconductor (except memory) industry revenue will decline by 4%, and wafer foundry will also decline by 3%, but TSMC will continue to expand its exhibit portfolio and expand its potential market. Dollar revenue will grow slightly.
