(Bloomberg) — Taiwan Semiconductor Manufacturing Co.’s April sales rose 60% to NT$236 billion ($7.3 billion) as sustained demand for artificial intelligence supported a beginning of recovery in consumer electronics. Ta.
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The world's largest contract chip maker saw sales decline by about a third in the quarter after accelerating to 34.3% in sales growth in March, driven largely by insatiable demand for AI semiconductors. It is estimated that this will increase. The global smartphone industry returned to growth in the first three months of this year, including in the highly competitive Chinese market, which could boost orders for mobile chips, TSMC's traditional mainstay.
Hsinchu-based TSMC weathered a year of sluggish demand for personal electronics last year, but popular Nvidia Inc. AI chips made demand more bearable. Although TSMC CEO CC Wei has warned about the pace of recovery, the AI push is now tied to the prospect of rising consumer demand.
Read more: TSMC sector outlook suggests weak recovery for PC, phone chips: Reaction
As NVIDIA's only maker of cutting-edge training chips, the company remains in an enviable position to benefit from the rise of AI technology, and its stock soared to an all-time high in April. TSMC also makes semiconductors for Apple Inc., which just announced its new iPad lineup, and Advanced Micro Devices Inc., Nvidia's closest competitor in the AI chip race.
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