TSMC rides AI surge
Taiwan’s leading chipmaker reports strong revenue growth as demand for AI semiconductors accelerates, highlighting pressure on advanced manufacturing and packaging capacity.
Taiwan Semiconductor Manufacturing Company posted first-quarter revenue of 1.13 trillion New Taiwan dollars, a 35 per cent increase from a year earlier, driven largely by sustained demand for artificial intelligence chips.
The world’s largest contract chipmaker continues to benefit from orders placed by major customers such as Apple and Nvidia, both of which are expanding their AI offerings.
The company’s growth reflects a broader industry shift toward high-performance computing and data centre infrastructure, where advanced semiconductors are critical.
Analysts expect TSMC to exceed its annual growth targets as AI-related demand offsets weaker conditions in smartphones and personal computers.
Rising complexity in chip design is also increasing reliance on advanced packaging technologies, an area where TSMC is investing heavily.
Capacity constraints in packaging have emerged as a key challenge as companies race to deploy more powerful AI systems.
At the same time, supply chain risks remain in focus amid geopolitical tensions, while investors are watching upcoming results from ASML, whose lithography machines are essential for producing leading-edge chips.
