TSMC Continues to Cash in on AI Boom, Revenue Soars 40% in January and February

Although March is already approaching its halfway point, Taiwanese company TSMC has only just published its financial report for February, reporting a 43.1% year-on-year increase in monthly revenue to $7.9 billion. Over the first two months of this year, the company’s revenue growth rate reached 39.2%, exceeding last year’s average of 34%.

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From January to February of this year, the company was able to earn $16.8 billion. Analysts on average expect TSMC’s revenue to grow by 41% year-on-year for the entire first quarter of this year. Such dynamics could prove that demand for the company’s services for contract production of semiconductor products is not decreasing amid interest in the topic of artificial intelligence. To some extent, the presence of such demand is also indicated by TSMC’s decision to increase spending on the construction of new enterprises in the United States by $100 billion. The company’s annual report also showed that the degree of revenue concentration in the American market is increasing.

As Bloomberg Intelligence analysts note, the demand for TSMC products is also indicated by the growth of Taiwan’s export revenue in January in the field of integrated circuits. At the same time, 200 mm silicon wafers, from which chips for automotive electronics and industrial automation are usually made, were in less demand, which indicates a concentration of demand in the segment of the most advanced lithography. TSMC’s intentions to invest another $100 billion in production infrastructure in the United States will not negatively affect the company’s credit rating, since the company’s cash reserves reach $44 billion. A source of certain nervousness for investors may be Trump’s intentions to both impose duties on chip imports to the United States and cancel subsidies for the construction of local enterprises under the 2022 law.