Taiwan's TSMC, the world's largest foundry company, announced that its third-quarter revenue exceeded market expectations this year, thanks to a surge in demand for semiconductors driven by the rapid growth of artificial intelligence (AI).
In its 2023 Q3 earnings report released on October 9 (local time), TSMC reported revenue of $23.622 billion, surpassing the $23.33 billion forecast by financial information provider LSEG. This represents a 36.5% increase compared to the same period last year.
TSMC had projected Q3 revenue between $22.4 billion and $23.2 billion during its July earnings announcement, but the higher-than-expected performance was attributed to a significant increase in demand for AI-related semiconductors.
This result reflects the ongoing rise in AI-related spending as governments and companies worldwide compete to gain an advantage in AI technology.
TSMC has established itself as a key global player in the production of advanced semiconductors essential for AI model training, and it has greatly benefited from the surge in AI demand.
In particular, for the month of September, sales grew 39.6% year-over-year, reaching TWD 251.87 billion.
TSMC's stock price has risen 72% on the Taiwan stock exchange this year, and its revenue has more than doubled since 2020. The growth of the semiconductor market is not limited to TSMC but is also evident across the global semiconductor industry.
According to the Semiconductor Industry Association (SIA), global semiconductor sales in August reached $53.1 billion, a 20.6% year-over-year increase.
SIA reported that sales in the Americas grew by 43.9%, with growth recorded in all regions except Europe, where sales declined by 9.0% compared to the previous year.
As AI technology continues to advance and semiconductor demand rises to support it, global semiconductor companies, including TSMC, are seeing significant benefits, and this trend is expected to continue for the foreseeable future.
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TSMC, AI Demand Surge Drives Q3 Revenue Beyond Expectations… 36.5% Growth Year-over-Year
Taiwan's TSMC, the world's largest foundry company, announced that its third-quarter revenue exceeded market expectations this year, thanks to a surge in deman
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