TSMC's Strong Performance Signals Tech Recovery and AI Demand Boost

Taiwan Semiconductor Manufacturing Co. (TSMC) anticipates a return to solid growth in the first quarter and has room to increase capital spending in 2024, signaling optimism for a recovery in smartphone and computing demand. The company projects revenue growth of at least 8% in the March quarter and plans capital expenditure of $28 billion to $32 billion, potentially up from 2023. TSMC's outlook reflects signs of a recovery in the chipmaking sector, with CEO C. C. Wei expecting a return to "healthy growth" this year. However, uncertainty persists due to challenges in the consumer electronics industry and questions surrounding China's market.