TSMC's Outlook Disappoints as Global Tech Slump Persists

The transcript discusses TSMC's financial performance, highlighting that while the top line was in line with estimates, the bottom line exceeded expectations due to cost controls. However, TSMC projects a 10% revenue drop in the first half of the year, with a rebound in the second half, marking the first annual revenue decline since 2009. Despite rumors, TSMC did not cut its CapEx budget, maintaining it at $32-36 billion, driven by anticipated demand from AI advancements. The company is focused on ensuring sufficient chip production capacity to meet the needs of AI companies like NVIDIA, AMD, and Intel.

What was the expected revenue drop for TSMC in the first half of the year?

What factors are driving demand for chips in the AI space according to the text?