TSMC, Samsung results hint at semicon recovery

Paul van Gerven
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TSMC’s March results and Samsung’s updated Q1 guidance indicate that the semiconductor downcycle may be coming to an end. TSMC reported a 16.5 percent increase in revenue in Q1, the biggest revenue growth since 2022. Samsung Electronics said it expects a 931 percent increase in quarterly operating profit in Q1. The world’s largest manufacturer of DRAM will report definitive financial results later this quarter.

Credit: Samsung

Over the past year, industry bellwether TSMC has been dealing with a sales slump as clients cut back on their inventory following a pandemic-driven surge in demand for chips used in consumer electronics. Samsung even faced one of the worst downturns in decades.

Following production cutbacks, recovery in the memory market has been apparent for some time now. DRAM and NAND prices have gone up 20 percent and 23-38 percent, respectively, since the start of the year, according to market researcher Trendforce. Amid a surge in demand for AI chips, however, it’s unclear whether TSMC’s revenue increase points to a broader semiconductor market recovery.

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