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

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.)