Taiwan Semiconductor Manufacturing Co. (TSMC) is set to hold its annual banquet tonight. TSMC chairman Terry Gou said that the company is optimistic about this year's semiconductor market, with strong growth in the development of semiconductors and artificial intelligence. TSMC has begun to build key production capacities for advanced packaging semiconductors, expecting revenue to flow in during the second half of the year. The company's process development is also advancing, with 40 nanometer technology having completed customer verification, with production expected in the second half of this year, and 28 nanometer technology expected to be completed in verification by the end of this year. Overall, TSMC is cautiously optimistic about this year's semiconductor market, with the company's business in the advanced packaging field being diversified and product structure optimized, expecting significant revenue growth compared to last year. Gou said that according to market research, the overall performance of the semiconductor industry is expected to be "very good" this year, with growth expected to be quite significant, with revenue growth expected to exceed 26%, AI-related fields expected to exceed 30%, and other parts expected to grow between 5-10%. TSMC's business is focused on the 5-10% growth range, and the company has been investing in advanced packaging manufacturing and supply chain and capital expenditures since the beginning of last year, laying the groundwork for future revenue growth. The company is also expanding its supply chain and capital investments, with a focus on building key production capacities for advanced packaging, and is expected to start injecting revenue in the second half of this year and next year. Regarding the visibility of orders, Gou admitted that the geographical and political situation has affected the supply chain, with many competitors emerging in China, but the company has been actively expanding its customer base and has successfully developed new business, expecting significant growth in the TSMC business this year. Currently, TSMC's production utilization rate is over 90%, and the company is planning to optimize the process combination, with a focus on increasing the 12-inch production node, with 40 nanometer technology completed customer verification, expected to start production in the second half of this year, and 28 nanometer equipment already in place, expected to be completed in verification by the end of this year. TSMC's investment strategy has been shifted to focus on core businesses, with Gou saying that the company has significantly reduced non-core or non-future-oriented investments, introducing external capital to jointly invest in the company, concentrating resources on the industry, such as reducing the number of test factories and closing unprofitable ones.