The Circuit Episode 101 Part 2: Digging into TSMC Earnings
Jan 20, 2025
Ben Bajarin and Jay Goldberg dive into TSMC's impressive earnings, spotlighting its surge in AI-driven revenue and a shift towards custom chip solutions. They highlight Intel's changing dynamics with TSMC and explore the ripple effects of AI on the semiconductor landscape. The conversation touches on challenges faced by NVIDIA amid rising demand and production complexities, alongside speculation about acquisitions in the industry. The duo paints a vivid picture of the evolving tech ecosystem and the exciting future of silicon demand.
AI Snips
Chapters
Transcript
Episode notes
AI Is Driving TSMC's New Growth Wave
- TSMC's upbeat tone signals AI is driving strong growth beyond smartphones and PCs.
- They reported AI revenue tripled last year and expect it to more than double this year.
Node Transitions Take A Back Seat
- The node-transition narrative has shifted from cutting-edge nodes to large HPC dies on mature nodes.
- Demand now focuses on ASICs, GPUs, custom work, and advanced packaging rather than pure node progression.
Advanced Nodes Still Healthy, Margins Intact
- TSMC's advanced-node roadmap (N2, N3, N5) remains strong and interest persists despite rising costs.
- Their gross margins held firm and management emphasized continued healthy margins despite new fabs abroad.