TSMC's Record Revenue Amid AI Chip Demand Surge

TSMC has reported a significant increase in net revenue in February, driven by continued demand for advanced semiconductors used in AI technologies. Despite a drop from January, the firm's year-on-year growth remains strong. A new fabrication plant in Tainan is part of its expansion strategy to meet global AI chip needs.

Taiwan Semiconductor Manufacturing Company (TSMC), the leading contract chip manufacturer, announced a robust rise in net revenue for February, highlighted by a 22.2% increase compared to the previous year due to steady demand for advanced semiconductors. Despite a 20.8% decline from January, the growth underscores a burgeoning requirement in the AI sector.

For the first months of 2026, TSMC's revenue of NTD 718.91 billion marked a 29.9% year-on-year increase, bolstered by high demand for its advanced chips in high-performance computing, smartphones, and AI applications from major global tech firms. TSMC's financial performance reflects its pivotal role in the global semiconductor supply chain.

TSMC's shares have surged to NTD 1,850, showing a 16.72% rise this year. Focus Taiwan reports an expansion in Tainan, with TSMC aiming to complete a new manufacturing plant by 2028 to satisfy the AI chip market's needs. Documents for environmental review were submitted in February, with construction expected to commence upon approval.

The new facility, located in Tainan Science Park's Development Block A, covers 15.46 hectares. TSMC plans to start building later this year, targeting completion and occupancy by 2028 after concluding the environmental assessment. A committee meeting on March 26 will further discuss this project's progress.

(With inputs from agencies.)