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TSMC Reports Significant Revenue Growth Amid AI Demand
Investing.com– Taiwan Semiconductor Manufacturing Company (TSMC), the leading contract chip producer globally, has experienced a notable increase in revenue through November, driven by surging demand related to artificial intelligence (AI). Despite this year-on-year growth, the company’s monthly revenue has shown a decrease compared to October.
In the latest financial report, TSMC’s net revenue surged by 34%, reaching T$276.06 billion (approximately $8.52 billion), up from T$206.03 billion during the same period last year.
However, there was a decline of 12.2% when compared to October’s revenue of T$314.24 billion. Despite this monthly dip, TSMC’s year-to-date revenue growth remains strong at 31.8%, reflecting a modest increase from the previous month.
The substantial revenue increase over the past year is primarily attributed to the booming AI sector, which has placed significant demands on semiconductor manufacturing. Still, there are concerns among investors regarding the sustainability of this growth trajectory, especially as the construction of data centers and the appetite for new chips may eventually taper off.
As a crucial partner to prominent AI firm NVIDIA Corporation, TSMC has expressed optimism about maintaining a strong demand for its services as it looks ahead to 2025.
Source
www.investing.com