Source URL: https://www.theregister.com/2024/10/17/tsmc_q3_2024/
Source: The Register
Title: TSMC revenue up 36% as world+dog demands AI and smartphone chips
Feedly Summary: Biggest semi contract manufacturer – and Nvidia supplier – building out capacity in US and Europe
Taiwan’s semiconductor giant TSMC has reported a good third quarter with revenue up 36 percent over a year ago, due to strong demand from chip companies for smartphone and AI-related silicon.…
AI Summary and Description: Yes
Summary: TSMC has reported a significant revenue increase driven primarily by strong demand for AI-related silicon and advanced semiconductor technologies. The company’s focus on 3 nm and 5 nm process technologies has positioned it well within the market, especially for high-performance computing and smartphones.
Detailed Description:
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading semiconductor contract manufacturer, has experienced remarkable growth in its revenue, reporting a 36% year-over-year increase for the third quarter of 2024. This surge is largely attributed to the rising demand for chips related to smartphones and artificial intelligence (AI).
Key Insights:
– **Financial Performance**: TSMC’s income reached $23.50 billion in the third quarter, marking significant growth both year-over-year (36%) and quarter-over-quarter (12%).
– **Market Trends**:
– The demand for the company’s advanced 3 nm and 5 nm process technologies has become a central driver of revenue, with these nodes contributing over half of TSMC’s total revenue.
– High-Performance Computing (HPC) represented 51% of TSMC’s revenue, emphasizing the importance of robust computing capabilities in the AI landscape.
– Smartphone-related silicon manufacturing accounted for 34% of the income, indicating a strong market for mobile devices that leverage AI capabilities.
– Internet of Things (IoT) chips showcased rapid growth, increasing by 35% quarter-over-quarter, although they still represent a smaller piece of TSMC’s revenue pie (7%).
– **Strategic Developments**:
– TSMC is expanding its global footprint with new facilities, including a significant fabrication plant in Dresden, Germany, and an advanced packaging facility in Peoria, Arizona.
– **Future Outlook**: The company expects this upward trend to continue, forecasting fourth-quarter revenue between $26.1 billion and $26.9 billion, driven primarily by ongoing demand for GPUs necessary for AI model training.
Overall, TSMC’s performance underscores the essential role of semiconductor manufacturers in supporting the AI industry’s growth and highlights the burgeoning importance of advanced technologies in contemporary computing. Security and compliance professionals should note the implications of these advancements, particularly in terms of supply chain integrity and hardware security as AI applications become increasingly integrated into various sectors.