TSMC Boosts Revenue with Artificial Intelligence
Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest independent semiconductor manufacturer, saw a 34 percent increase in revenue in November. This surge comes at a time when artificial intelligence is gaining significant traction.
TSMC's Success in AI Sector
Recently, there has been a surge in demand for AI chips, positioning industry giants like TSMC at the forefront of competition. The company is witnessing high demand from tech giants such as Apple, Nvidia, and AMD, thanks to its expertise in advanced manufacturing processes like 5nm and 3nm. Moreover, TSMC's investments in technologies like CoWoS play a crucial role in producing AI processors.
Future Projections and Growth
TSMC aims to achieve revenues of $26.9 billion in the final quarter of 2024, representing a growth rate of 11 to 14 percent quarterly. While November's revenues were slightly lower than October's record figures, the company's annual performance has been remarkable, with a 31.8 percent growth rate from January to November.
Global Expansion and Capacity Challenges
To cater to the increasing demand, TSMC is ramping up its global investments. The company is constructing three new factories in Arizona, with a hefty price tag of $65 billion, and expanding its presence in other countries. Additionally, TSMC plans to double its production capacities for CoWoS technology annually between 2024 and 2025. Despite these efforts, meeting the soaring demand remains a challenge due to current capacity constraints.
