TAIPEI (Reuters) -Taiwan Semiconductor Manufacturing Co, the dominant producer of superior chips utilized in synthetic intelligence functions, is anticipated to report a 5% rise in first-quarter revenue on Thursday due to robust demand. The world’s largest contract chipmaker, whose prospects embody Apple and Nvidia, has benefited from a surge in the direction of AI that has helped it climate the petering out of pandemic-led electronics demand and pushed TSMC’s inventory to a file excessive. TSMC is about to report a web revenue of T$218.1 billion ($6.74 billion) for the quarter ended March 31, based on an LSEG SmartEstimate drawn from 22 analysts. SmartEstimates give larger weighting to forecasts from analysts who’re extra constantly correct. That compares to the first-quarter web revenue of T$206.9 billion final yr. TSMC final week reported a 16.5% rise in first-quarter income, beating market expectations and on the excessive finish of the corporate’s personal steering.
The corporate will present updates on its outlook for the present quarter and the remainder of the yr on an earnings name at 0600 GMT on Thursday, together with capital expenditure which it has beforehand guided as being within the vary of $28 billion to $32 billion this yr, in contrast with final yr’s $30.45 billion.
On Wednesday, ASML, the most important provider of apparatus to laptop chip makers like TSMC, reported weaker than anticipated first-quarter new bookings, although gross sales to China held up regardless of U.S.-led restrictions.
Firm executives may additionally speak about TSMC’s plans within the U.S. state of Arizona, the place it has introduced it is going to construct a 3rd manufacturing facility after successful $6.6 billion in U.S. subsidies.
TSMC leads the world in superior chip manufacturing, utilized in all the things from smartphones and tablets to fighter jets, although opponents like Intel and Samsung try to problem the corporate’s dominance. Intel this month disclosed deepening working losses for its foundry enterprise, a blow to the chipmaker because it tries to regain a expertise lead it misplaced in recent times to TSMC. The AI increase has helped drive up the value of shares in Asia’s most useful firm, with TSMC’s Taipei-listed inventory having surged greater than 30% to this point this yr to a historic excessive, in contrast with a 12% acquire for the broader market.
($1 = 32.3700 Taiwan {dollars})
(Reporting by Ben BlanchardEditing by Jamie Freed and Shri Navaratnam)