TSMC posts record monthly revenue growth thanks to AI chip boom

Taiwan's TSMC, the world's largest contract semiconductor manufacturer, posted a sharp rise in monthly revenue in March. This was the result of the ongoing boom in demand for high-end chips for artificial intelligence needs.

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TSMC's revenue reached NT$195.2bn ($6.1bn) in March, up 34.3% year-on-year. This marked the fastest growth rate since November 2022.

For the first quarter as a whole, the company's revenue rose 16.5 per cent year-on-year to NT$592.6 billion. TSMC makes chips for a wide range of customers, from Apple to NVIDIA.

The AI chip market is booming, fuelled by the development of artificial intelligence applications based on advanced semiconductors. This is creating a growing demand for TSMC's production capacity.

In addition to major players such as NVIDIA, new competitors are also emerging in the market - for example, AMD released its own chip last year to rival NVIDIA's solutions. Intel also unveiled its new AI developments.

As a result, TSMC shares are up nearly 40 per cent since the start of the year as investors bet on sustained demand for AI chips. The company itself forecasts that its AI revenue will grow at a 50 per cent annualised rate.

Source: CNBC