Taiwan Semiconductor Manufacturing Company (TSMC) makes a majority of the world’s advanced chips — and it’s getting a boost from the artificial intelligence boom.
The world’s most important semiconductor foundry reported said on Friday that its net revenue in May rose 30% year-over-year to $7.1 billion. But that was a decrease of 2.7% from April. Meanwhile, the company’s revenue for the period of January through May saw a year-over-year increase of 27%.
A race to develop larger and more powerful AI models has propelled the chipmaker’s valuation, placing it back among the 10 most valuable companies in the world in March. TSMC manufactures semiconductors for chip companies such as Advanced Micro Devices and AI chip leader Nvidia — which it has an exclusive partnership with. Those companies then sell the chips to tech giants including Microsoft and Facebook parent Meta. TSMC also fabricates chips for Apple, which is playing catchup up in the AI race.
In April, TSMC predicted its second-quarter sales could rise by up to 30% — higher than projected earlier — thanks to customers including Nvidia and Apple. It expects second-quarter revenue to be between $19.6 billion and $20.4 billion — higher than the earlier estimated $19.1 billion. TSMC also said it was keeping plans to spend up to $32 billion this year, a majority of which will go toward advanced technologies.
“Our business in the first quarter was impacted by smartphone seasonality, partially offset by continued HPC-related demand,” Wendell Huang, senior vice president and chief financial officer of TSMC, said in a statement. “Moving into second quarter 2024, we expect our business to be supported by strong demand for our industry-leading 3nm and 5nm technologies, partially offset by continued smartphone seasonality.”
Earlier this month, TSMC chairman and chief executive C.C. Wei reaffirmed previous projections that the chip market, excluding the memory sector, would experience 10% growth this year driven by the AI boom.
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June 07, 2024 at 09:11PM
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TSMC sales surge 30% thanks to AI boom and chips demand - Quartz
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