A strategic player in the development of new artificial intelligence technologies, TSMC is forecasting growth of at least 50% a year in its production of processors dedicated to AI applications.
Unsurprisingly, CEO C.C. Wei has singled out this area as a priority, even if he soberly warns that the industrialization phase is still in the "early stages".
The other major growth driver - again with production expected to increase by 50% a year - is the new CoWoS assembly technology. Coupled with the Taiwanese company's unrivalled scale, this enables it to mass-produce ultra-high-performance chips at rock-bottom prices.
The highlight of the year was the start-up of production of 3nm chips - the new horizon for the industry. This already accounts for 6% of TSMC's sales. By 2024, volumes are set to triple.
Mr. Wei points out that, in this 3nm category where the group was a pioneer, all smartphone manufacturers and high-performance computing (HPC) specialists work with TSMC.
Asked about Intel's competition, Mr. Wei pointed out that the American company's 18A technology was equivalent in quality to the Taiwanese company's N3P. However, TSMC has the first-mover advantage: when 18A is ready in two years' time, TSMC will already have three years of mass production behind it.
On the financial front, TSMC is projecting an annual investment budget of around $30-$32 billion for 2024 and 2025, in line with the previous three years. If growth targets are confirmed, we can therefore expect a substantial increase in cash flow.
Management anticipates an increase in consolidated sales of at least 20% in 2024. At the same time, it is announcing an increase in the dividend, and predicts that it will be able to maintain its gross margin levels in the future.