TSMC posts record revenue in second quarter on AI demand

TAIPEI — TSMC, the world's largest contract chipmaker, reported on Monday (July 13) second-quarter revenue that rose 36 per cent from a year earlier to a record high on surging interest in artificial intelligence applications.

Revenue in the April-June period of this year came in at T$1.27 trillion (S$51.2 billion), according to Reuters calculations, slightly above a T$1.264 trillion LSEG SmartEstimate drawn from 20 analysts.

Taiwan Semiconductor Manufacturing Co (TSMC) is a major supplier to companies including Nvidia and Apple.

On its last earnings call in April, the company predicted second-quarter revenue of between US$39 billion (S$50.4 billion) and $40.2 billion. The company gives its forecast only in US dollars and not Taiwan dollars.

For June alone, TSMC reported that revenue rose 67.9 per cent year-on-year to T$442.68 billion, which was up 6.2 per cent compared with the previous month.

The data was originally due last Friday, but it was delayed due to the impending arrival of Typhoon Bavi, which shut financial markets in Taipei that day.

TSMC, Asia's most valuable publicly listed company with a market capitalisation of US$1.955 trillion, did not provide any details or forward guidance in its brief revenue statement.

It is scheduled to report second-quarter earnings on Thursday, when it will also update its outlook and plans for the current quarter and the rest of the year.

TSMC is expected to report a 58.8 per cent on-year rise in second-quarter net profit, according to an LSEG SmartEstimate.

TSMC's Taipei-listed shares closed up one per cent on Monday ahead of the release of the sales data. The broader market closed flat.

The company's shares have risen 57 per cent so far this year, in line with the broader market.

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