Taiwan’s chipmaking sector posted robust revenues in the fourth quarter, bolstered by advancements in artificial intelligence (AI) development and currency tailwinds. Major players such as TSMC (TW:2330), MediaTek Inc (TW:2454), ASE Industrial Holding Co Ltd (TW:3711), and KYE Systems Corp (TW:2365) were at the forefront, reflecting the sector’s growing significance in the global tech ecosystem.
Key Highlights
Revenue Surge:
TSMC, Taiwan’s largest company by market cap, is anticipated to report a 58% profit leap for Q4 on January 16, following a 28% surge in quarterly revenue.
Other chipmakers like MediaTek, ASEH, and KYEC also recorded strong sales in December, hinting at sustained demand in the sector.
AI Momentum:
AI development has significantly boosted demand for semiconductors, with product upgrades in edge AI devices driving industry growth.
Citi analysts project 10–15% YoY growth for the non-memory semiconductor industry in 2024, citing normalized inventory levels and specifications upgrades as key drivers.
Currency Impact:
Depreciation of the Taiwan dollar further enhanced revenue figures, providing a favorable export environment for chipmakers.
Citi’s Preferred Picks:
Upstream Semiconductors: TSMC, MediaTek, ASEH, KYEC.
Downstream Chip Firms: Quanta Computer Inc, Wiwynn Corp, Hon Hai Precision, Delta Electronics, Lotes Co Ltd, Accton Technology, Asustek Computer, Aspeed Technology.
TSMC at the Forefront
As the world’s largest chipmaker, TSMC has capitalized on soaring AI-driven demand over the past two years. With its Q4 earnings around the corner, analysts expect the company to issue an optimistic 2024 outlook, projecting:
10–15% YoY growth in non-memory semiconductors.
Continued benefits from edge AI and normalized inventory levels.
Deep Dive with APIs
To analyze revenue trends of these chipmakers over time, explore the Financial Growth API for detailed growth metrics.
For comprehensive performance insights, the Full Financials API provides detailed financial reports, enabling comparisons across major players.
The AI revolution continues to reshape the semiconductor industry, with Taiwanese chipmakers well-positioned to lead the charge.
