Taiwan's TSMC Raises Revenue Forecast Amid AI Chip Demand Surge

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) has raised its full-year revenue forecast due to increasing demand for AI chips and maintained its stance against a joint venture factory in the United States. Despite mixed stock reactions, TSMC continues its global expansion plans and projects tight chip supply until 2026.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chipmaker, increased its full-year revenue forecast on Thursday, driven by a surge in demand for AI-related chips. The company, a key supplier to both Apple Inc and Nvidia, has been bolstered by the global AI boom despite a slowdown in pandemic-driven electronics demand.

TSMC also reported net profits that exceeded market forecasts and raised its 2024 revenue growth projection to slightly above the mid-20% range in U.S. dollars. CEO C.C. Wei emphasized the heightened demand for AI functionality in devices during an earnings conference.

Following the financial results, TSMC's U.S.-listed shares rose 3.3% in pre-market trading, whereas its Taiwan-listed shares fell 2.4% before the announcement. Despite political comments from U.S. Republican presidential candidate Donald Trump, the company reaffirmed its expansion plans in the United States, Japan, and Germany.

(With inputs from agencies.)