TSMC July Sales Surge 45% Year-on-Year... "AI Demand Continues"

[Image source=AFP Yonhap News]

The world's largest foundry (semiconductor contract manufacturing) company, Taiwan's TSMC, saw its sales last month increase by more than 40% compared to the previous year. This surge in sales is attributed to the global demand for artificial intelligence (AI) chips.

According to Bloomberg News, on the 9th, TSMC reported that its sales in July this year rose 44.7% year-on-year to NT$256.95 billion (approximately KRW 10.8279 trillion). TSMC expects its annual sales growth rate for last month to exceed the previously forecast mid-20% range.

With the significant increase in July sales, the total sales for the third quarter of this year are expected to greatly surpass market expectations. Previously, TSMC's sales forecast for the third quarter of this year was NT$747.4 billion (approximately KRW 31.5328 trillion), a 37% increase compared to the same period last year.

However, concerns have recently grown regarding the profitability of AI infrastructure investments made on a large scale by big tech companies, and potential delays in the development of Nvidia's next-generation AI chips manufactured by TSMC are also considered negative factors.