In recent years, AI algorithms have become increasingly optimized and complex, requiring more processing power. This has prompted increased demand for high-performance AI chips to support faster and more efficient data processing and learning tasks. Moreover, AI technology is penetrating various industries and fields, including autonomous driving, healthcare, financial services, and smart manufacturing. The rapid development of cloud computing and big data services has led to a surge in demand for high-performance AI chips in data centers.
TSMC, as the world's leading semiconductor manufacturer with advanced process technology and production capacity, is able to meet the market demand for high-performance AI chips. In addition, TSMC has established partnerships with several AI chip design companies, including NVIDIA, AMD, and Google. With the rapid development and wide application of AI technology, the demand for AI chips is growing rapidly, which drove TSMC's sales growth in the first quarter.
According to TSMC sources, March 2024 revenue was NT$195.2 billion (US$6.1 billion), up 34.3% year-on-year and 7.5% sequentially. Revenue from January to March 2024 totaled NT$592.64 billion, a 16.5% increase year-on-year and higher than the market estimate of NT$579.5 billion. This is the fastest growth rate since November 2022 Reinforcing market expectations that the global AI development boom is driving demand for high-end chips combined with servers.
The AI chip boom has generated significant sales growth for TSMC and this trend is expected to continue in the coming years. As AI technology continues to mature and application areas expand, demand for high-performance AI chips will continue to grow, providing continued market opportunities for semiconductor manufacturers such as TSMC.
TSMC's sales growth further solidified its leadership position in the global semiconductor foundry market. As the largest independent semiconductor manufacturer, TSMC's growth demonstrates its competitive advantages in advanced process technology, production efficiency, and customer service. The growth in sales has provided TSMC with additional capital to develop new technologies and improve existing processes. This has helped drive innovation in semiconductor technologies, including advanced process technologies, 3D integrated circuits, and high-performance computing chips.
