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The Asian chipmaking giant that provides services to Nvidia and Apple has seen its revenue and market value steadily increase over the past year.
Taiwan Semiconductor Manufacturing Company (TSMC) has seen its shares soar thanks to a continued increase in global demand for AI chips, entering the trillion-dollar club this week.
TSMC is the world’s largest contract chipmaker and provides services to the likes of Nvidia, AMD, Qualcomm and Apple. The global surge in AI demand that has seen major tech company values reach record heights in recent months has also benefitted the Taiwanese company’s revenue, contributing to a major chunk of the $4.8bn foreign investment in Taiwan’s stock market so far this year, according to Reuters.
In its most recent earnings report, TSMC – a strong Asian competitor to US counterparts such as Intel – said its revenue was more than a third higher in March than it was a year before, raking in more than NT$195bn in consolidated revenue. This was also 7.5pc higher than the previous month.
Total revenue for the first quarter of the year between January and March stood at more than NT$592bn, an increase of 16.5pc compared to the same period in 2023.
Revenue guidance from the company for the second quarter starting April was between $19.6bn and $20.4bn. However, a Reuters calculation shows that Q2 revenue stands at NT$673.51bn (around $20.7bn) beating analyst estimates. TSMC will post its second quarter earnings on 18 July.
One of its star customers, Nvidia, has had recent success in producing graphics processing units, or GPUs, that power AI models, seeing its revenue skyrocket and making it the world’s third most valuable tech company by market cap.
In early April, the US said it is awarding TSMC billions of dollars in subsidies and loans to boost semiconductor production in the country as part of a broader goal of improving its share in the chips market. Weeks before that, the US government said it would give Intel $8.5bn to help the chipmaker boost domestic production.
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