As technology companies feel the adrenaline With go all-in on artificial intelligencethe chipmakers behind their success are making money.
A Taiwanese semiconductor company on Wednesday reported sales of NT$592.6 billion, or $18.5 billion, in the January-March period, marking a 16.5% year-on-year escalate in March quarter revenue and the fastest monthly sales growth since 2022 . exceeded expectations at NT$579.5 billionor $18.1 billion. TSMC said its March revenue was about NT$195.21 billion, or $6.1 billion, up 7.5% from February and up 34.3% from a year earlier.
Semiconductor company produces approximately 90% of the world’s advanced chipsand is a major chip manufacturer Nvidia AND Apple. According to Bloomberg, its value has more than doubled since October 2022 due to demand for AI chips. TSMC is expected to continue its solid growth this year, which will be sustained by: AI chip boom. In January, the company reportedly said its AI revenue would grow 50% annually.
TSMC shares rose slightly in pre-market trading on Wednesday. The company’s shares are up more than 43% so far this year and more than 63% in the last 12 months.
TSMC is also the newest chipmaker receive funding from the federal CHIPS and Science Act, which is intended to support domestic advanced chip production. Under the law, the company will receive $6.6 billion in grants and up to $5 billion in loans to support its first major U.S. chip production center in Phoenix. It has two chip manufacturing plants in Arizona, with production scheduled to begin in 2025 and 2028.
Part of the funding from the CHIPS Act will be used to build a third facility by the end of the decade focusing on the production of chips using 2 nanometer or more advanced technology. The chip manufacturing center will enable the United States to produce 20% of the world’s advanced chips by 2030, the Biden administration says. Currently USA produces less than 10% of the world’s chips– says the White House.
