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TSMC takings up 60 per cent

by on10 May 2024

Thanks to AI

TSMC has announced that their April takings have shot up nearly 60 per cent compared to last year, thanks to a massive demand for the top-notch semiconductors that are all the rage in AI gadgets.

The Taiwan Semiconductor Manufacturing Company holds sway over more than half the global chip market, and its is the one kitting out everything from mobile phones to Nvidia's snazzy AI tech.

The company said that in April, it earned "about €6.76 billion (NT$236.02 billion)... a hefty 59.6 per cent more than April 2023. That's a step up from the 34.3 per cent leap it reported in March.

Last month it reported a 13 per cent bump in first-quarter earnings to about €17.61 billion, and they're banking on a 27.6 per cent surge for the next one.

The smashing hit of OpenAI's ChatGPT has kicked off a proper AI frenzy, with a worldwide scramble for the bleeding-edge chips needed to power AI services.

About the only thing that is keeping TSMC’s share price down is that most of their factories snug in Taiwan, the self-governed isle that China's got its eye on. Beijing is not mincing words. They might flex their muscles to get Taiwan under their thumb, and they've been flexing their military might around the island quite a bit lately.

The chip supply chain is a bit wobbly, and governments are nudging TSMC to expand its production beyond Taiwan's shores.

The Yanks, in particular, are on a mission. In 2022, they passed the Chips and Science Act to give their own semiconductor scene a makeover.

US Commerce Secretary Gina Raimondo discussed it just Wednesday at a US House chinwag, saying that if China were to nab Taiwan and TSMC, it would be a disaster for the US economy.

"Right now, the United States nicks 92 per cent of its top-tier chips from TSMC in Taiwan," she said. "They're miles ahead of what we're up to in the States."

TSMC plans to build a third factory in the US, bringing its total US investment to about €60.48 billion.

They've hit a few snags stateside over the past year, putting it down to a tight squeeze on the talent pool – chip-making's not exactly a doddle, after all.

But if they succeed, Raimondo reckons the TSMC plants in Arizona will be the first to produce chips on US turf.

This year has also seen TSMC kick off a new €8.02 billion venture in Kyushu, down south in Japan—a bit of a triumph for the Japanese as they duke it out with the US and Europe to charm chip firms with hefty handouts.

They've got another Japanese project in the pipeline in Kumamoto for even fancier chips.


Last modified on 10 May 2024
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