TSMC Beats Q4 Revenue Estimates on Robust AI Chip Demand, Though 2022 Declines Overall
• TSMC beats revenue expectations in Q4 2022 on strong AI chip demand from Nvidia, AMD
• Overall 2022 revenue declined 4.5% to NT$2.16 trillion, but outperformed guidance
• Demand boosted by AI chips, while smartphone and laptop chips see sluggish growth
• Recovery expected in 2023 leading into 2024, with chip glut reaching trough in summer 2022
• Cloud computing and on-device AI apps expected to drive IT replacement cycle in 2024