In Q4, the revenue of the top 10 largest foundries increased by 7.9% quarter-over-quarter to $30.5 billion, with TSMC leading the growth with a 14% increase to nearly $20 billion. TSMC also expanded its market share to over 61%, up from below 58% in Q3, due to strong demand for AI chips. Orders from major companies like Apple, Intel, and AMD for TSMC's 3nm production are expected to rise throughout 2024, contributing to over 20% of TSMC's total revenue, with 3nm being second behind only 5nm for TSMC revenue. This surge is partly due to the anticipated demand for the iPhone 15 series featuring the 3nm A17 Pro processor. Despite a 13.6% year-over-year revenue decrease in 2023, attributed to a challenging macro backdrop and a slower recovery in China, the industry is projected to see a 12% increase in revenue to $125.2 billion in 2024, driven by AI demand. However, Taiwan's electricity price hikes are expected to have minimal impact on TSMC and UMC but will affect smaller foundries. TSMC and other industrial firms in Taiwan will face power tariffs ranging from 15% to 25% starting April 1.