Taiwan Semiconductor Manufacturing Company (TSMC) revealed on Thursday a notable surge in its net profits during the first quarter of 2024, with a nearly 9 percent increase, attributed to the soaring global demand for its microchips powering various devices, from smartphones to AI technologies.
The Taiwanese semiconductor behemoth, a key supplier to tech giants like Apple and Nvidia, reported a net profit rise of 8.9 percent year-on-year for the period of January to March, amounting to NT$225.4 billion ($6.97 billion). This marks a substantial increase from NT$206.9 billion in the corresponding period last year. Moreover, its first-quarter revenues also witnessed a notable uptick of 13 percent year-on-year, reaching $18.87 billion.
During the earnings call on Thursday, TSMC’s CFO Wendell Huang shared optimistic projections, anticipating a robust 27.6 percent increase in revenues for the second quarter.
As a frontrunner in the chip-making industry, TSMC’s influence extends globally, with its cutting-edge microchips catering to diverse technological needs. However, the bulk of its advanced chip fabrication facilities are situated in Taiwan, a territory facing political tensions with China and vulnerable to natural disasters such as earthquakes.
In response to concerns about supply chain resilience, calls have been made for TSMC to diversify its production locations away from Taiwan. Despite encountering challenges, such as the recent impact of a magnitude-7.4 earthquake on its operations, TSMC remains committed to meeting demands and minimizing disruptions.
Furthermore, the company is expanding its presence in the United States, with plans to establish additional semiconductor facilities in Arizona. The preliminary agreement with the US Commerce Department, under the Chips and Science Act, entails substantial funding support of up to $6.6 billion from the US government, propelling TSMC’s total investment in the US to $65 billion.
In a statement, TSMC’s CEO CC Wei emphasized the progress made in their Arizona projects, highlighting the company’s commitment to meeting the growing demand for advanced chips, particularly in AI applications. Additionally, TSMC’s venture in Japan with the launch of a new $8.6 billion plant in Kyushu underscores its strategic expansion efforts to meet global semiconductor demands.
With its unwavering dedication to innovation and expansion, TSMC continues to play a pivotal role in shaping the future of the semiconductor industry, both in Asia and across the globe.