The world's biggest contract chipmaker just posted its strongest quarter ever, and artificial intelligence is the reason why.
Taiwan Semiconductor Manufacturing Co. (TSMC) reported record second-quarter revenue, according to Reuters and Yahoo Finance, as demand for AI chips continues to accelerate. Bloomberg reported that TSMC's sales surged 36% in what it called a fresh sign of AI spending momentum, and an MSN report likewise put the year-over-year growth at 36%, beating analyst estimates.
TSMC makes the advanced processors that power much of the AI industry. According to Crypto Briefing, the record haul was driven by AI-related demand from major customers including Nvidia and Apple. The Taipei Times reported that TSMC, the world's largest contract chipmaker, logged its highest-ever quarterly sales amid strong global demand for AI applications.
The company is also expanding to keep up. According to theedgemarkets.com, citing a government minister, TSMC will add two advanced chip packaging plants in Chiayi, in southern Taiwan. A report from finance.biggo.com described the two new advanced packaging plants as part of a four-fab complex expected to reach $930 million in annual output. Advanced packaging is a key step in assembling the high-performance chips that AI systems rely on.
Investors were watching closely: ANI News reported that TSMC was expected to provide updates on capital spending and advanced technology at an investor meeting on Thursday.
Why it matters: TSMC sits at the center of the global AI supply chain, so its record results and capacity expansion are a barometer for just how much money is flowing into artificial intelligence.