TSMC’s Sales Experience Slowest Growth Since October Despite Ongoing AI Development

Taiwan Semiconductor Manufacturing Co. reported its slowest monthly revenue growth since October, underscoring potential difficulties in maintaining an intense pace of growth driven by AI.

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%.

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.