(Bloomberg) — Taiwan Semiconductor Manufacturing Co. saw April sales jump 60% to NT$236 billion ($7.3 billion) as sustained demand for artificial intelligence was helped by the start of a recovery in consumer electronics products.
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The world’s largest contract chipmaker is estimated to increase sales by about a third in the current quarter after revenue growth accelerated to 34.3% in March, driven largely by insatiable appetite for AI semiconductors . The global smartphone industry has returned to growth during the first three months of the year, including in the highly competitive Chinese market, which could boost orders for TSMC’s traditional mobile chip mainstay.
Hsinchu-based TSMC weathered a year of weak demand for personal electronics last year, which Nvidia Corp.’s highly sought-after AI chips have led to. helped make it more tolerable. Now, the AI push is paired with rising consumer demand prospects, although TSMC CEO CC Wei has warned about the pace of any recovery.
Read more: TSMC Sector Outlook Implies Weak PC, Phone Chip Recovery: React
The company’s shares soared to an all-time high in April as it remains in an enviable position to benefit from the rise of AI technology, being Nvidia’s sole maker of the most advanced training chips. TSMC also makes semiconductors for Apple Inc., which just announced a new line of iPads, and Advanced Micro Devices Inc., Nvidia’s closest competitor in the AI chip race.
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