TSMC August Revenue Up 33% on Strong AI Chip Demand
TSMC's revenue in August reached NT$250.9 billion (US$7.8 billion), marking a 33% year-on-year growth. Although this is lower than July's 45% growth rate, analysts expect TSMC's revenue to rise by 37% in the third quarter, continuing the post-pandemic recovery momentum seen throughout 2023.
This performance helps ease concerns about the sustainability of AI infrastructure investments. On September 3, Nvidia reported earnings that fell short of the highest expectations, causing a significant $279 billion drop in its market value—the largest single-day loss in its history. TSMC derives over half of its revenue from high-performance computing (HPC), with much of this demand driven by AI-related technologies.
As Nvidia's preferred chip manufacturer and the primary supplier of Apple's iPhone processors, TSMC plays a pivotal role in both the AI and mobile device sectors. Apple recently launched its iPhone 16 series, designed specifically for AI applications, with features to be introduced gradually through software updates. Wall Street is betting on a rebound in mobile device demand.
According to analyst Charles Shum, Apple's adoption of Wi-Fi 7 in the iPhone 16 and iPhone 16 Pro is expected to accelerate the technology's penetration, boosting demand for TSMC's N6 (7nm) and N4 (5nm) nodes. These nodes are already being used by companies such as Broadcom and MediaTek for Wi-Fi 7 chip production. Additionally, Apple's new A18 and A18 Pro processors have met performance expectations, further fueling optimism for increased sales of TSMC's N3E node (second-generation 3nm).
In its most recent earnings report, TSMC expressed confidence in its business outlook, raising its full-year growth forecast to above 20%. With market conditions improving, TSMC Chairman Mark Liu is leading a global expansion effort. The company has announced progress in its Arizona project in the U.S., is considering a third wafer plant in Japan, and recently began construction of a €10 billion facility in Germany.
