TSMC, a major chip manufacturer based in Taiwan, reported a significant increase in net profit in the second quarter of 2024. This growth was driven by the high demand for generative artificial intelligence products worldwide. TSMC, which counts Apple and Nvidia among its clients, dominates more than half of the world’s silicon wafer production, which is essential for various technologies such as smartphones and automobiles.
The company has been at the forefront of the generative AI revolution, particularly with the success of ChatGPT, producing advanced microchips that power products developed in Silicon Valley.
In the April-June period, TSMC made NT$247.8 billion (US$7.6 billion), representing a 36 percent increase from the same period last year. Revenues for the second quarter reached US$20.82 billion, a 32 percent year-on-year rise.
Wendell Huang, TSMC’s CFO and senior vice president, stated that the second-quarter performance was driven by strong demand for their innovative technologies. The company anticipates continued growth in the third quarter, fueled by demand for smartphones and AI-related products.
TSMC expects third-quarter revenues to reach $23.2 billion, surpassing expectations, and has raised its full-year capital expenditure outlook to US$30-US$32 billion.
Despite recent geopolitical tensions and market fluctuations, TSMC remains focused on its expansion plans, including new factories in the United States and Japan. The company’s commitment to international growth and innovation remains unwavering, with plans for potential expansion in Europe in the future.
str-dhc/dan
