Strong demand for AI chips, TSMC's revenue in August increased by 33% to NT $250.9 billion
TSMC's revenue increased by 33% in August, which is a positive signal for investors betting on the recovery of the smartphone market and the continued demand for Nvidia's artificial intelligence (AI) chips.
TSMC's sales in August reached NT $250.9 billion (US $7.8 billion), lower than the 45% growth rate in July. Analysts predict that TSMC's revenue will increase by 37% in the third quarter, continuing the recovery momentum after the pandemic in 2023.
This performance result helps alleviate market concerns about the sustainability of AI infrastructure spending. On September 3rd, Nvidia's announced earnings did not meet its highest expectations, causing the company's stock price to drop by $279 billion, marking the largest single day decline.
More than half of TSMC's current revenue comes from high-performance computing (HPC), which is driven in part by AI demand.
TSMC is Nvidia's preferred chip manufacturer and a major manufacturer of Apple's iPhone main processors. Apple's latest release of the iPhone 16 series is "built from scratch" for AI, but its features will be gradually added to the device through software updates. Wall Street is betting on a rebound in demand for mobile devices.
Analyst Charles Shum stated that Apple's adoption of Wi Fi 7 on the iPhone 16 and iPhone 16 Pro should accelerate the penetration of this technology and stimulate demand for TSMC N6 (7nm) and N4 (5nm) nodes, which have been used in Wi Fi 7 chip production by companies such as Broadcom and MediaTek. The performance improvement of Apple A18 and A18 Pro processors meets expectations, further enhancing the optimistic outlook for sales growth of TSMC N3E nodes (second-generation 3nm).
TSMC made an optimistic assessment of its business and prospects in its last earnings report. In July of this year, TSMC raised its full year growth forecast to the mid range above 20%.
With the improvement of the market, TSMC Chairman Wei Zhe jia is leading a large-scale global expansion. TSMC has announced preliminary progress on its project in Arizona, USA, and is considering establishing a third wafer fab in Japan. A few weeks ago, it started construction on a 10 billion euro wafer fab in Germany.
This performance result helps alleviate market concerns about the sustainability of AI infrastructure spending. On September 3rd, Nvidia's announced earnings did not meet its highest expectations, causing the company's stock price to drop by $279 billion, marking the largest single day decline.
More than half of TSMC's current revenue comes from high-performance computing (HPC), which is driven in part by AI demand.
TSMC is Nvidia's preferred chip manufacturer and a major manufacturer of Apple's iPhone main processors. Apple's latest release of the iPhone 16 series is "built from scratch" for AI, but its features will be gradually added to the device through software updates. Wall Street is betting on a rebound in demand for mobile devices.
Analyst Charles Shum stated that Apple's adoption of Wi Fi 7 on the iPhone 16 and iPhone 16 Pro should accelerate the penetration of this technology and stimulate demand for TSMC N6 (7nm) and N4 (5nm) nodes, which have been used in Wi Fi 7 chip production by companies such as Broadcom and MediaTek. The performance improvement of Apple A18 and A18 Pro processors meets expectations, further enhancing the optimistic outlook for sales growth of TSMC N3E nodes (second-generation 3nm).
TSMC made an optimistic assessment of its business and prospects in its last earnings report. In July of this year, TSMC raised its full year growth forecast to the mid range above 20%.
With the improvement of the market, TSMC Chairman Wei Zhe jia is leading a large-scale global expansion. TSMC has announced preliminary progress on its project in Arizona, USA, and is considering establishing a third wafer fab in Japan. A few weeks ago, it started construction on a 10 billion euro wafer fab in Germany.