Taiwan Semiconductor Manufacturing Co. reported a strong August revenue increase, underscoring continued demand for high-end chips used in artificial intelligence systems. The figures reinforce how AI-related orders remain a key driver for the contract chipmaking leader’s sales, capacity use and investment plans.
Revenue for August reached T$514.8 billion, or about $16.35 billion, a 53.3% increase from a year earlier. Compared with July, sales advanced 10.1%. For the year to date, TSMC generated T$3.38 trillion in revenue, 39.3% above the same period last year.
The company’s most advanced manufacturing technologies were the main contributor to the monthly gain. Demand for leading-edge production has expanded as customers require more sophisticated processors for AI applications, tightening available capacity across TSMC’s top process nodes.
That capacity pressure has allowed TSMC to command stronger pricing for contract manufacturing while also pushing the company to expand output. TSMC is a major supplier to Nvidia and has gained from its leading position in outsourced chip production.
Investor enthusiasm has followed the earnings momentum. TSMC shares have doubled over the past year and are up sixfold since late 2022.
The company remained the dominant player in the global foundry industry during the second quarter, holding a 72.5% market share, according to TrendForce data released Wednesday. The research firm said AI server processor demand kept TSMC’s 5-nanometer, 4-nanometer and 3-nanometer capacity fully booked during the quarter.
TSMC expects capital spending this year to reach a record $60 billion to $64 billion, or roughly 80 trillion to 85.7 trillion won. It also forecasts annual revenue growth of more than 40% in U.S. dollar terms.
