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Taiwan Semiconductor Manufacturing Co. (TSMC), the world's premier contract chipmaker, has experienced a substantial 60% surge in sales for April, reaching NT$236 billion ($7.3 billion). This impressive growth is largely fueled by the ongoing high demand for artificial intelligence (AI) chips and a nascent recovery in the consumer electronics market.
April's robust sales performance positions TSMC well above its revenue growth projections for the current quarter. The company saw a 34.3% increase in sales in March, bolstered by the strong market demand for AI semiconductors. Additionally, the global smartphone industry, particularly in the competitive Chinese market, has shown signs of revival in the first quarter, potentially boosting orders for TSMC’s mobile chip production.
Based in Hsinchu, TSMC has navigated through a period of subdued demand for personal electronics over the past year. However, the surge in demand for Nvidia Corp.’s AI chips has provided a significant buffer. Now, this AI-driven momentum is being complemented by improving prospects in consumer electronics demand, though TSMC's CEO, C.C. Wei, remains cautious about the speed of the recovery.
TSMC’s strategic role in the AI revolution is further cemented by its exclusive partnership with Nvidia for manufacturing the most advanced AI training chips. The chipmaker also serves as a key supplier for Apple Inc., which recently unveiled a new iPad lineup, and Advanced Micro Devices Inc., Nvidia’s main competitor in the AI chip market.
Reflecting its strong financial performance and optimistic future prospects, TSMC's shares reached an all-time high in April. The company’s board has also declared a cash dividend of NT$4 per share, underscoring its financial health and commitment to shareholder returns. As TSMC continues to capitalize on the expanding AI technology market and a rebound in consumer electronics, it remains a critical player in the global semiconductor industry.
