(Bloomberg) — Taiwan Semiconductor Manufacturing Co. saw its April sales jump 60% to NT$236 billion ($7.3 billion), as sustained demand for artificial intelligence was supported by the start of ‘a recovery in consumer electronics.
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The world’s largest contract chipmaker is expected to increase sales by about a third in the current quarter, after revenue growth accelerated to 34.3% in March, supported largely by insatiable appetite for AI semiconductors. The global smartphone industry returned to growth in 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 subdued demand for personal electronics last year, as Nvidia Corp’s highly sought-after AI chips. helped to make it more tolerable. Today, the development of AI comes with growing prospects for consumer demand, although TSMC CEO CC Wei has cautioned about the pace of any recovery.
Read more: TSMC Sector Outlook Implies Weak PC, Phone Chip Recovery: React
The company’s shares hit a record high in April as it remains in an enviable position to benefit from the rise of AI technology, being Nvidia’s sole manufacturer for the most advanced training chips. TSMC also makes semiconductors for Apple Inc., which just announced a new iPad line, and Advanced Micro Devices Inc., Nvidia’s closest competitor in the AI ​​chip race.
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