Taiwan Semiconductor Manufacturing Co (TSMC) saw revenue climb 39 per cent in the first two months of the year, quickening from 2024, in a sign of resilient demand for client Nvidia’s chips that power artificial intelligence (AI) development.
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The world’s largest contract chip manufacturer reported combined revenue for the first two months of NT$553.3 billion (US$16.8 billion). That compares with 34 per cent growth during the full-year of 2024. Analysts on average are projecting growth of about 41 per cent this quarter.
As the manufacturer of most of the AI chips in the world, TSMC’s sales are a barometer for the sector.
Wall Street and Silicon Valley are now debating the sustainability of an AI frenzy that made Nvidia the world’s most valuable company, especially after Chinese start-up DeepSeek appeared to demonstrate a more frugal approach to building AI models.
“Taiwan’s robust growth in integrated circuit exports in January imply AI chip sales are driving up TSMC’s revenue, export data show,” Bloomberg Intelligence analysts Masahiro Wakasugi and Takumi Okano wrote in a research note.
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“While 300-millimeter silicon wafer shipments signal a recovery, 200-mm wafers appear to reflect weaker automotive and industrial demand,” the analysts’ report said. “Electric components need an order pickup from consumer-device companies.”
