Finance

TSMC’s May sales jump 30% as countries race to secure AI chips

Published

4 weeks ago

June 7, 2024

TSMC's May sales jump 30% as countries race to secure AI chips

(Bloomberg) — Taiwan Semiconductor Manufacturing Co.’s revenue rose 30% to NT$229.6 billion ($7.1 billion) in May, helped by booming demand for artificial intelligence and a recovery in some consumer electronics.

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The world’s largest contract chipmaker has benefited from a global race to develop AI services, with semiconductors for Nvidia Corp. are produced which are then sold to companies such as Microsoft Corp. and OpenAI. Global smartphone sales also emerged from a prolonged slump in the first three months of the year, fueling expectations for strong mobile chip orders.

Hsinchu-based TSMC has been able to maintain high margins as the world rushes to build data centers. It is the exclusive manufacturer of Nvidia’s most advanced AI accelerators, and also manufactures semiconductors for Apple Inc. and Advanced Micro Devices Inc., Nvidia’s biggest competitor.

This week, TSMC Chairman and Chief Executive Officer CC Wei reiterated expectations for AI development that will drive an industry-wide recovery this year.

—With help from Alfred Liu and Twinnie Siu.