In April, sales increased by 17.5% to NT$410.7 billion ($13.1 billion), marking its smallest gain in approximately six months. Although this increase represents only one month of business and revenue can vary, analysts expect the company’s revenue for the June quarter to grow nearly double that rate, around 35%.
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Taiwan’s largest firm has become a crucial entity in the global AI sector by producing advanced semiconductors for companies like Nvidia Corp. and Advanced Micro Devices Inc. Meanwhile, Alphabet Inc., Amazon.com Inc., Meta Platforms Inc., and Microsoft Corp. have announced a collective $725 billion allocation for AI this year, significantly more than earlier projections.
However, the company faces challenges from a stagnant smartphone and consumer electronics market, where rising memory chip prices are compelling brands to increase their prices. Economic uncertainties are also constraining consumer demand in various regions worldwide.
TSMC remains optimistic about global demand for AI chips. In April, the company raised its sales guidance for the year and stated that its capital expenditures should trend toward the upper end of an existing forecast range of up to $56 billion, indicating confidence in the economic outlook for the year.
