Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue rose 45 percent last month, accelerating its pace of growth from the second quarter and bolstering hopes for sustained strong demand for artificial intelligence (AI) chips from the likes of Nvidia Corp.
Sales for the month reached NT$256.95 billion (US$7.92 billion). For the third quarter, analysts project TSMC revenue should grow 37 percent to NT$747.4 billion, with last month’s result suggesting TSMC could surpass those expectations.
Taiwan’s biggest company is one of the key bellwethers for AI demand, as the go-to chipmaker for leading accelerator makers Nvidia and Advanced Micro Devices Inc. It is also the sole supplier of processors for Apple Inc’s iPhones, at a time the mobile device market is showing signs of bouncing off post-COVID-19 lows.
Photo: An Rong Xu, Bloomberg
The world’s largest contract chipmaker last month raised its full-year growth outlook to beyond the maximum mid-20 percent it had guided toward previously.
TSMC offered an upbeat assessment of its business and prospects when it last reported earnings, with chief executive officer C.C. Wei (魏哲家) signaling the company might have room to raise prices as more of its customers transition to its most advanced technology and have to compete for limited capacity.
High-performance computing, led by AI, contributed 52 percent of TSMC’s revenue last quarter, the first time it has accounted for more than half.
However, investors have started to question whether the billions of dollars big tech firms have invested in the infrastructure to support the AI boom would result in substantial returns, while a potential delay in Nvidia’s development of a new generation of AI chips is spurring concerns over the progress of the emerging technology.
Worries about the global economic outlook over the past week interrupted the AI rally that had seen key players such as TSMC gains billions in market value. Investors opted to cash out of some of the year’s biggest gainers, pushing TSMC’s shares down 10 percent in a day, although they recovered much of that in subsequent days as money managers saw a good buying opportunity.
Taiwanese firms have increased investment in the Philippines in recent years as Manila’s ties with Washington deepen and global supply chains continue to shift away from China, an expert at the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The Philippines had not been among Taiwanese investors’ top choices in Southeast Asia, CIER Taiwan ASEAN Studies Center director Kristy Hsu (徐遵慈) said at a seminar in Taipei. However, Taiwan’s investment in the country has grown significantly since the COVID-19 pandemic, reaching US $257 million last year, a high in recent years, she said. Although Taiwan’s total investment in the Philippines still lags
HSBC Holdings PLC is deepening its commitment to Taiwan as the economy emerges as one of the bank’s fastest-growing markets globally, driven by an artificial intelligence (AI) investment boom, expanding cross-border trade, and rising wealth creation. “The advantage that Taiwan has is a growth story linked to the semiconductor and broader AI industries, strong underlying corporate performance, and wealth creation,” said Surendra Rosha, HSBC’s co-chief executive for Asia and the Middle East, in an exclusive interview with the Taipei Times on June 2, during this year’s HSBC Taiwan Conference. That combination has helped HSBC cement its position as the most profitable international
Intel Corp regards Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) as a longstanding partner, as the US chipmaker would continue outsourcing production of advanced chips to TSMC, Intel chief executive officer Lip-Bu Tan (陳立武) said yesterday. “I don’t look at people as competitors. I look at the collaboration... Nvidia is also, you know, a good friend,” Tan told a news conference following his keynote speech at the Computex trade show in Taipei. “It’s a very trusted partnership for us... We are a big, top customer for them, and we’re going to continue doing that,” he said, referring to TSMC, the world’s largest foundry
Hon Hai Precision Industry Co (鴻海精密) yesterday said it would work with US chipmaker Intel Corp to jointly develop and deploy next-generation artificial intelligence (AI) infrastructure and intelligent computing platforms in a move to capture booming demand for AI computing systems. Hon Hai, also known as Foxconn Technology Group (富士康), said in a statement that the partnership would combine its global manufacturing scale, system integration expertise and AI data center deployment capabilities with Intel’s strengths in processor architecture, silicon technologies and software ecosystem. The companies said they plan to work on equipment used in AI data centers, including server racks powered by
RSS