Global AI Demand

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, reported a 30% year-on-year revenue increase in Q3 on Thursday. The results beat market expectations. The surge is driven by strong demand for the company’s products amid growing interest in artificial intelligence applications. TSMC continues to expand its massive semiconductor campus in Phoenix—part of an historic $165 billion investment aimed at strengthening its U.S. footprint and meeting global demand for advanced microchips.

Via Reuters:

TSMC, the world’s largest contract chipmaker, reported on Thursday third-quarter revenue rose 30% year-on-year, beating the market forecast, as demand for the company’s products leapt on surging interest in artificial intelligence applications.

Revenue for July-September came in at T$989.92 billion ($32.47 billion), according to Reuters calculations, compared with T$759.69 billion in the year ago period.

The latest result handily topped an LSEG SmartEstimate of T$973.26 billion drawn from 22 analysts, and was in the mid-point of guidance of $31.8 billion to $33 billion issued by TSMC in July in its last earnings call. TSMC only gives guidance in U.S. dollars.

TSMC (2330.TW) will report full third-quarter earnings on October 16, including an updated outlook for the current quarter and full year.

The company, whose customers include Nvidia (NVDA.O) and Apple (AAPL.O), has been a major beneficiary of advances in AI, which has more than offset the tapering off of pandemic-led demand for chips used in consumer electronics like tablets.

TSMC’s Taipei-listed shares have gained 34% so far this year, compared with an 18.5% rise for the broader market (.TWII).

Taiwan’s Foxconn (2317.TW), the world’s largest contract electronics maker and Nvidia’s biggest server maker, has also reported bumper sales, logging its highest-ever revenue for the third quarter.

Sponsor Members

About TSMC

TSMC (Taiwan Semiconductor Manufacturing Company Limited or Taiwan Semiconductor) is a Taiwanese multinational semiconductor contract manufacturing and design company. It is the world’s largest dedicated independent semiconductor foundry, and its country’s largest company, with headquarters and main operations located in Hsinchu, Taiwan. Although the central government of Taiwan is the largest individual shareholder, the majority of TSMC is owned by foreign investors. In 2023, TSMC served 528 business customers and manufactured 11,895 products for various applications covering a variety of end markets including high performance computing, smartphones, the Internet of Things (IoT), automotive, and digital consumer electronics.