, Columnist
TSMC Keeps Spending to Leverage the AI Boom
The chip giant sees revenue dropping this year, but has chosen to keep charging ahead.
Steadfast on spending.
Photographer: I-Hwa Cheng/BloombergThis article is for subscribers only.
A weakening global economy and listless demand for electronics is finally catching up with Taiwan Semiconductor Manufacturing Co., which Thursday cut its outlook for both the company and the broader chip industry. That will hurt the bottom line, but won’t divert the tech giant from its aggressive spending plan.
Instead of posting slight growth this year, in US dollar terms, the world’s biggest chipmaker will report its first revenue decline since 2009, while the chip sector (excluding memory) will drop by a mid-single digit percentage. That weakness will be front-end loaded with the first half dropping 10% from a year earlier.