AFP – Chip making giant TSMC said yesterday its net sales rose by more than a third last year, beating its own forecast, as the company continued to benefit from soaring demand for artificial intelligence (AI) technology.
The semiconductor manufacturing company controls more than half the world’s output of chips used in everything from Apple’s iPhones to Nvidia’s cutting-edge AI hardware.
Net revenue rose 33.9 per cent to USD87.8 billion, the company said in a statement, ahead of the release of its complete earnings report next week.
The result exceeded its estimate in October for full-year revenue to increase by nearly 30 per cent, underscoring expectations for sustained spending on AI infrastructure from the likes of Microsoft and Amazon.
It comes after AI server maker Foxconn, also known by its official name Hon Hai Precision Industry, reported strong sales.
TSMC is at the forefront of a generative AI revolution, churning out the world’s most advanced microchips needed to power products made by Silicon Valley.
Its shares have more than doubled since the AI boom began in late 2022 with the debut of OpenAI’s ChatGPT, Bloomberg News reported.
TSMC’s new factories overseas include three planned in the US and one that opened in Japan last year.
The US will award TSMC up to USD6.6 billion in direct funding to help build “state-of-the-art facilities in Arizona”, officials said in November, finalising the deal before Donald Trump’s administration enters the White House.
