Home ยป Transformational AI Chip Demand Drives TSMC’s Third Quarter Performance with Revenue Surge of 16.5%

Transformational AI Chip Demand Drives TSMC’s Third Quarter Performance with Revenue Surge of 16.5%

TSMC has reported its first quarter performance in 2024 with total sales of 592.644 billion Taiwanese dollars, a 16.5% increase compared to the same quarter in the previous year. They also recorded a net profit of 225.485 billion Taiwanese dollars, an 8.9% increase.

During the Q2 2024 earnings call, Wendell Huang, the CFO of TSMC, provided additional insights, stating that the company is seeing strong demand for 3-nanometer and 5-nanometer technology products, offsetting revenue declines from smartphone products due to seasonal factors.

CEO C.C. Wei mentioned that most leading AI developers are currently collaborating with TSMC to develop energy-efficient processing chips. He also projected that revenue from AI server chips this year will more than double from 2023.

Revenue distribution from advanced manufacturing technology products; 3-nanometer accounting for 9% of total revenue, 5-nanometer for 37%, and 7-nanometer for 19%. Overall, revenue from high-end manufacturing technology (7 nanometers or less) accounts for 65% of total revenue.

Source: CNBC and TSMC

TLDR: TSMC reports strong growth in Q1 2024 with increased sales and profits, driven by demand for advanced technology products and collaborations with AI developers.

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