Taiwan Semiconductor Manufacturing Co. (TSMC) reported second-quarter sales rose 36% to NT$1.27 trillion (US$39.6 billion), in line with market expectations. The performance was driven by continued strong demand for artificial intelligence (AI) chips.
In June alone, TSMC’s sales jumped 68% compared to the same period last year, indicating that the company is still receiving high orders from major customers such as Nvidia and Apple, which rely on TSMC to produce high-performance chips.
TSMC CEO C.C. Wei previously said that the company is still unable to fully meet the growing demand for AI chips even though new production capacity is being built in the United States.
That view was supported by SK Hynix, which expects a shortage of AI memory chips, including High Bandwidth Memory (HBM), to likely continue beyond 2030 due to demand from the growing data center industry.
While the outlook for the AI industry remains positive, investors remain cautious as major tech companies like Alphabet continue to spend hundreds of billions of dollars building AI infrastructure.
The key question now is whether these large-scale investments can generate a decent return in the long term.
To meet growing demand, TSMC plans to spend nearly US$56 billion on capital expenditures this year.
The market is now awaiting the company's full financial report, scheduled for release this week, for further insight into the performance and prospects of the AI chip industry.
