TSMC’S Single-Quarter Revenue Exceeded The Threshold Of NT$1 Trillion For The First Time, And The Annual Growth May Exceed 30%

TSMCThe latest financial report data released showed that driven by demand for artificial intelligence chips, the company set another quarterly revenue record, with first-quarter revenue growing 35%, exceeding market expectations.

TSMC wrote in a statement on Friday that its revenue from January to March this year reached NT$1.134 trillion (approximately US$35.71 billion), compared with NT$839.3 billion in the same period last year. This was the first time that the company's revenue in a single quarter exceeded the threshold of NT$1 trillion.Among them, monthly revenue in March reached NT$415.19 billion, a year-on-year increase of 45.2% and a month-on-month increase of 30.7%.

As the core chip foundry for the world's top technology companies such as Nvidia, Apple, AMD, and Broadcom, TSMC is responsible for the production and manufacturing of the vast majority of advanced semiconductors in the world. It is also a core beneficiary of the development of artificial intelligence technology.The strong growth in the field of artificial intelligence has significantly supported the continued expansion of its business.

While TSMC’s revenue has hit record highs, ongoing conflicts in the Middle East have pushed up energy costs and disrupted global markets.Geopolitical risks may also threaten the supply of key raw materials needed for semiconductor production. Analysts point out that this uncertainty may force relevant companies to postpone investment in artificial intelligence data centers.

However, analysts raised TSMC's revenue forecast for April to June by 2.3% to a record NT$1.2 trillion, according to LSEG data, as they believe capacity constraints in advanced artificial intelligence chip production will help boost the company's earnings.

Sravan Kundojjala, an analyst at SemiAnalysis, said: We believe TSMC will easily exceed its 30% annual growth target.Although the smartphone and PC end markets have been hit by memory shortages, TSMC's artificial intelligence business has played a key role.Because more and more manufacturers are beginning to design their own chips, including hyperscale data center operators like Google, and many startups are bringing new products to the market for artificial intelligence reasoning.

As one of the very few companies able to produce the most cutting-edge chips, TSMC makes chips used in everything from consumer electronics to data centers and has been a major beneficiary of hundreds of billions of dollars in investments in artificial intelligence infrastructure.TSMC also reportedly raised prices for its most advanced chips, a big factor in first-quarter sales beating expectations.Kundojjala said he also forecast TSMC's first-quarter gross margin to reach 64%.

It is reported that TSMC will announce its first-quarter financial report on April 16, and also release the latest outlook for this quarter and the full year.