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Key takeaways
- TSMC recorded a record turnover of 13.9 billion euros in August.
- Demand for AI hardware is driving a dominant market share of 72.5 per cent.
- The next generation of ASML technology will power future chip production.
Driven by sustained demand for artificial intelligence hardware, Taiwan Semiconductor Manufacturing (TSMC) reached an unprecedented revenue milestone in August.
Record revenue
The leading contract chip manufacturer achieved revenue of 514.8 billion New Taiwan dollars (approximately 13.9 billion euros), an increase of 53.3 per cent compared to last year and 10.1 per cent higher than July’s figures. This result continues the positive trend of monthly growth that has now lasted for four consecutive months.
Strong financial outlook
The company’s financial performance remains strong. In the second quarter, profit rose by more than 77 per cent.
During the presentation of the quarterly figures in July, TSMC described demand for AI-focused semiconductors as exceptionally strong. At that time, the company expected revenue in the third quarter to be between 44.6 billion and 45.8 billion dollars, equivalent to around 38 billion to 39 billion euros.
Dominance in the foundry sector
TSMC holds an overwhelming position in the market for contract chip production for other companies. In the second quarter, the company controlled 72.5 per cent of the market. The strong demand for AI server chips meant that the most advanced production lines – in particular the 3-, 4- and 5-nanometre processes – remained fully utilised.
Samsung Foundry and SMIC, by contrast, had significantly smaller market shares of 5.9 per cent and 5.4 per cent respectively. Together, the ten largest foundries achieved record revenue of almost 53.49 billion dollars (45.5 billion euros), fuelled by the scarcity of components for high-performance computing.
Future prospects
With an eye on future innovation, TSMC is working with Dutch equipment manufacturer ASML to break new ground in next-generation manufacturing techniques.
The Taiwanese company plans to integrate ASML’s High NA technology into its mass production for advanced nodes by 2030. This transition is expected to accelerate as AI developments require more complex transistor designs. (zvm) (at)
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