TSMC Revenue Surges 35%, Driven by AI Boom

TAIPEI - Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, reported first-quarter revenue of T$1.134 trillion ($35.71 billion). This marks a significant 35% increase year-over-year, exceeding market forecasts. The surge is attributed to escalating interest in artificial intelligence (AI) applications.

January-March revenue significantly outpaced the T$839.3 billion recorded in the same period last year. The results surpassed LSEG's SmartEstimate of T$1.125 billion from 20 analysts. TSMC's full first-quarter earnings and an updated outlook are scheduled for April 16.

The company, a key supplier to major tech firms including Nvidia, has been a primary beneficiary of advancements in AI. This growth has effectively counteracted a slowdown in demand for chips used in consumer electronics, a trend amplified during the pandemic.

TSMC's stock performance reflects its strong market position, with shares up 29% this year, outperforming the benchmark index. In related news, Taiwan's Foxconn, a major contract electronics maker and Nvidia's largest server supplier, also reported substantial first-quarter sales growth.