Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) reported a 26 percent growth spurt last month, adding to evidence of accelerating spending on artificial intelligence (AI).
The go-to chipmaker for AI hardware providers Nvidia Corp and Advanced Micro Devices Inc yesterday said that sales last month totaled NT$323.2 billion (US$10.83 billion). That growth is in line with analyst expectations of a 25 percent increase in the company’s third-quarter revenue.
Even with the headwind of a stronger New Taiwan dollar, TSMC is on a torrid pace of growth this year — up 38 percent over its performance from January to July last year — and it is working to close the gap between supply and elevated demand.
Photo by Cheng I-hwa / AFP
TSMC shares hit a record high on Thursday, following an announcement by the administration of US President Donald Trump of new tariffs on chips that would exempt TSMC due to its investment in US production.
TSMC and GlobalWafers Co (環球晶圓) are the most likely of Taiwan’s chipmakers to benefit from new tariffs on semiconductors after investing billions in production facilities in the US. Limited near-shoring efforts by United Microelectronics Corp (聯電) and ASE Technology Holding Co (日月光投控) leave them vulnerable and at risk of losing market share to US-based rivals GlobalFoundries Inc and Amkor Technology Inc.
Beyond its primacy as the top choice for AI silicon, TSMC still has significant business providing semiconductors for smartphones and that sector is on a gradual recovery this year, Sony Group Corp said after its earnings on Thursday.
Apple Inc also just reported its fastest quarterly revenue growth in more than three years on solid demand in China and said its sales in the current quarter would grow a mid-to-high-single-digit percentage year-on-year.
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