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The company behind a majority of the world’s advanced chips is seeing its sales surge amid the artificial intelligence boom.
Taiwan Semiconductor Manufacturing Company (TSMC) reported revenue of NT$256.95 billion, or $7.9 billion, for July, up 23.6% from June, and up 44.7% from the previous year. In June, TSMC reported its net revenue in May grew 30% year-over-year to $7.1 billion. Sales from January through July amounted to NT$1,523.11 billion — up 30.5% from the same period last year.
In July, TSMC beat analysts’ expectations for the second quarter, reporting revenue of $20.82 billion for fiscal year 2024 — up 40% from a year ago. The Taiwanese chipmaker, which has an exclusive partnership with AI chip designer Nvidia and is the only supplier of chips for Apple’s iPhones, has seen its shares rise around 61% so far this year. TSMC’s second quarter business “was supported by strong demand for our industry-leading 3nm and 5nm technologies,” Wendell Huang, chief financial officer of TSMC, said in a statement. In the third quarter, Huang said TSMC expects smartphone and AI-related demand to drive business. The company expects third-quarter revenue to be between $22.4 billion and 23.2 billion.
TSMC chief executive C.C. Wei said on a call with analysts AI is “so hot” right now, and that all of its customers are integrating AI into products and devices. Wei said he expects chip production to catch up to demand by 2025 or 2026. In June, Wei reaffirmed previous projections that the chip market, excluding the memory sector, would experience 10% growth this year driven by AI demand.
Earlier this year, TSMC received $6.6 billion in grants through the federal CHIPS and Science Act to support its first major U.S. chipmaking hub in Phoenix. TSMC already has two chipmaking facilities in Arizona expected to begin production in 2025 and 2028 and will use some of the new funding to build a third facility, increasing the company’s investment from $40 million to $65 million.