TSMC Surges with AI Chip Demand: Revenue Forecast Raised

TSMC, the world's largest contract chipmaker, has raised its full-year revenue forecast due to increasing demand for AI chips. The company ruled out a joint venture factory in the U.S. despite expanded overseas operations. TSMC's shares and net profit soared, reflecting the robust AI market and strong smartphone chip demand.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) has revised its full-year revenue forecast upward, driven by a surge in demand for AI chips. The world's foremost contract chipmaker has ruled out forming a joint venture factory in the United States, despite ongoing expansions across various countries including Arizona, Japan, and Germany.

TSMC's latest financial results significantly exceeded market predictions. It has elevated its 2024 revenue growth forecast to the mid to high-20% range in U.S. dollar terms, a noticeable increase from prior projections. CEO C.C. Wei attributed this growth to the escalating interest in AI functionalities among TSMC's customers.

The company's U.S. shares saw a 3.3% rise in pre-market trading, although its Taiwan-listed shares fell 2.4% before the earnings announcement. Highlighting its international footprint, TSMC remains focused on meeting escalating demand, particularly for leading-edge node chips where capacity constraints are critically tight.

(With inputs from agencies.)