Given the recent excellent results and commentary from Taiwan Semiconductor Manufacturing (NYSE: TSM), I thought I'd outline a few charts that help confirm the semiconductor industry. By extension, it's clear the electronics industry is firmly set for recovery in 2024. However, this isn't just about the semiconductor industry; chips are used in everything from computers to smartphones, automobiles, industrial equipment, and more. Good news from the semiconductor usually means good news for the economy down the line.

The company's recent results were excellently received by the market, with management signaling an expectation for more than 20% growth in 2024, driven by artificial intelligence (AI)-led demand. While the capital spending forecast is superficially disappointing -- management is aiming for $28 billion to $32 billion compared to $30.4 billion in 2022 -- there are reasons for this. Simply put, Taiwan Semiconductor has ramped up spending to prepare for growth in recent years, so this year's forecast capital spending is still relatively high.

Of course, the semiconductor industry is highly cyclical and subject to shifts in the demand for its end market customers, so you shouldn't blindly invest in the sector based on a company's forecast.

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Source Fool.com