Taiwanese semiconductor giant TSMC on Friday announced a nearly 60% jump in April revenue compared to the same month a year earlier, an increase driven by demand for artificial intelligence products ( AI) powered by electronic chips.
The Taiwan Semiconductor Manufacturing Company counts Apple and Nvidia among its customers and controls more than half of the world’s semiconductor production. Its turnover amounted to “around 236.02 billion” Taiwan dollars (6.75 billion euros) “i.e. an increase of 59.6% compared to the month of April 2023”, according to a company press release.
In March, TSMC recorded an increase of 34.3% compared to the same month the previous year.
The group, which has undertaken to diversify its production beyond the island of Taiwan, posted in April a 13% increase in its turnover for the first quarter of 2024 over one year, to 17.50 billion dinars. euros. He expects an increase of 27.6% for the second quarter.
Demand for high-performance chips is considerable, with companies equipping themselves with the hardware needed to develop AI following the launch of ChatGPT, the hugely popular artificial intelligence tool from US start-up OpenAI.
Last month, South Korean chipmaking giant SK Hynix announced that it would cooperate with TSMC to develop a new generation of high-speed memory (HBM) used in AI.
SK Hynix dominates the market for HBM chips, components essential to the functioning of AI, and is one of the major suppliers to Nvidia, an American behemoth in the processor sector.
TSMC dominates the chipmaking sector and most of its factories are based in Taiwan, a self-governing island claimed by neighboring China that has stepped up political and military pressure against Taipei in recent years.
The semiconductor supply chain is highly vulnerable to crises, and governments have put pressure on TSMC to move more production lines off the island.
Last month, during a major earthquake in Taiwan, TSMC sent a multitude of emails to reassure its customers that it would have minimal consequences on production, according to the company.
TSMC also announced in early April its intention to build a third semiconductor factory in Arizona, while two units are under construction, bringing its total investment in the United States to $65 billion.
TSMC’s plans in Arizona hit roadblocks last year, attributed to difficulties recruiting staff with highly specialized skills.
These TSMC factories in Arizona would allow us to see for the “first time” the most advanced chips manufactured on American soil, declared the American Secretary of Commerce, Gina Raimondo in early April.
In February, TSMC inaugurated a new factory on the island of Kyushu, in southern Japan, which competes with the United States and Europe to attract semiconductor manufacturers with significant subsidies.
Japan also plans to build another factory in Kumamoto to make more sophisticated chips.
