TSMC posted record revenue in the second quarter. The Taiwanese chipmaker is once again benefiting from strong demand for AI chips and performed slightly better than analysts had expected.
Revenue for the period from April through June totaled 1.27 trillion New Taiwan dollars, equivalent to approximately 39.6 billion dollars. That is 36 percent more than in the same period last year and just above analysts’ consensus forecast. TSMC thus continues to benefit from the global wave of investment in AI infrastructure.
The company manufactures chips for companies such as Nvidia and Apple and is considered the leading contract manufacturer of advanced semiconductors. During the presentation of its previous quarterly results, TSMC had already forecast revenue of between 39 and 40.2 billion dollars for the second quarter. The figures now published fall within that range.
It is not surprising that revenue trends are being closely monitored. With a market capitalization of approximately $1.955 trillion, TSMC is Asia’s most valuable publicly traded company. Its revenue trends are therefore considered a key indicator of global demand for advanced chips and AI infrastructure.
The final month of the quarter contributed significantly to the results. In June, revenue rose 67.9 percent year-over-year to 442.68 billion New Taiwan dollars. Compared to May, growth was 6.2 percent.
The release of the revenue figures was delayed by a few days because Typhoon Bavi shut down the financial markets in Taipei last Friday.
Outlook to follow later this week
The announcement included only revenue data. TSMC did not provide further commentary on the results nor did it issue new forecasts for the rest of the year.
Those forecasts are likely to follow on Thursday, when the company presents its full quarterly results. According to Reuters, analysts expect second-quarter net income to have risen by 58.8 percent compared to a year earlier. If that forecast proves accurate, it will confirm that strong revenue growth is also translating into further improvements in profitability.
In particular, the continued strong demand for AI accelerators and other advanced chips remains the key driver of growth.
Investors reacted positively to the revenue figures. TSMC shares closed 1 percent higher on Monday in Taipei. Since the beginning of the year, the stock price has risen by about 57 percent, in line with the broader Taiwanese stock market.
TSMC expands capacity
The strong demand for AI chips is also leading to further expansion of production capacity. Taiwan’s Minister of Science and Technology announced that TSMC has begun the second phase of expansion for its packaging campus in the Chiayi Science Park.
One factory for advanced chip packaging is already operating at full capacity there, and a second will follow shortly. The new construction phase includes two additional factories, with which TSMC aims to further increase its advanced packaging capacity to meet the sustained demand for AI processors. According to the Taiwanese government, the entire complex will ultimately generate more than 300 billion New Taiwan dollars in annual production and create approximately 9,000 jobs