TSMC CEO Sees Signs of a Bottom in Chip Industry

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By Yang Jie The world's biggest contract chip maker, Taiwan Semiconductor Manufacturing Co., offered some indications Thursday that the chip industry's rough...

The world's biggest contract chip maker, Taiwan Semiconductor Manufacturing Co., offered some indications Thursday that the chip industry's rough year may be coming to an end.

However, in a conference call with investors on Thursday, TSMC Chief Executive C.C. Wei said he believed the industry was close to the bottom. TSMC said high-performance computing is expected to be one of the strongest growth drivers in the coming years. It also cited robust demand from artificial-intelligence applications and said cutting-edge chip manufacturing technology, such as the 3-nanometer nodes used in Apple's latest iPhone models, continues to drive sales.

TSMC said its capital expenditures this year would come in at $32 billion, in line with its previous forecast, compared with last year's record $36.3 billion. About 70% of that will go to building up capacity for the most advanced semiconductors, the company said.

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