As tech companies feel the rush from going all-in on AI, the chipmakers behind their success are cashing in.
Taiwan Semiconductor Manufacturing Co. on Wednesday reported sales of NT$592.6 billion, or $18.5 billion, for January through March — a 16.5% year-over-year increase in its March-quarter revenue, and its fastest monthly sales growth since 2022. Its revenue also beat expectations of NT$579.5 billion, or $18.1 billion. TSMC said its revenue for March was approximately NT$195.21 billion, or $6.1 billion — an increase of 7.5% from February, and an increase of 34.3% from the previous year.
The semiconductor company makes an estimated 90% of the world’s advanced chips, and is the main chipmaker for Nvidia and Apple. Its value has more than doubled since October 2022 due to a demand for its AI chips, Bloomberg reports. TSMC is expected to continue solid growth this year, sustained by the AI chip boom. In January, the company reportedly said its AI revenue is expected to grow 50% annually.
TSMC stock was up slightly in pre-market trading Wednesday. The stock has surged more than 43% so far this year, and more than 63% over the last 12 months.
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TSMC is also the latest chipmaker to receive funding from the federal CHIPS and Science Act, which is meant to support homegrown advanced chipmaking. The company will get $6.6 billion in grants through the law, and up to $5 billion in loans to support its first major U.S. chipmaking hub in Phoenix. It has two chipmaking facilities in Arizona expected to begin production in 2025 and 2028.
Part of its CHIPS Act funding will go toward building a third facility focused on producing chips with 2-nanometer or more advanced technology by the end of the decade. The chipmaking hub will put the U.S. on track to produce 20% of the world’s advanced chips by 2030, the Biden administration says. The U.S. currently produces less than 10% of chips in the world, according to the White House.