TSMC July sales hit 2nd highest level on AI boom

Taipei, Aug. 8 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) on Friday reported the second highest monthly sales in the company's history, with analysts attributing the strong showing to solid global demand for artificial intelligence applications.

In a statement, the world's largest contract chipmaker said it posted NT$323.17 billion (US$10.83 billion) in consolidated sales in July, up 22.5 percent from a month earlier and also up 25.8 percent from a year earlier.

The July figure represents TSMC's second highest monthly sales ever, trailing only the NT$349.57 billion recorded in April.

In the first seven months of this year, TSMC's consolidated sales totaled NT$2.096 trillion, up 37.6 percent from a year earlier.

● TSMC July sales hit 2nd highest level on AI boom

At an investor conference held in mid-July, the company gave guidance, saying it expected sales in the third quarter to range from US$31.8 billion to US$33.0 billion, with the midpoint representing an 8 percent increase from the second quarter.

TSMC made the forecast based on an exchange rate of NT$29 against the U.S. dollar. In Taiwan dollar terms, third quarter revenue could reach NT$922.20 billion to NT$957.00 billion.

After July, TSMC's average sales in August and September could range between NT$299.6 billion and NT$316.9 billion.

The assumed forex exchange rate of NT$29 implies the Taiwan dollar could appreciate 6.6 percent from the second quarter. According to TSMC, which is expected to reduce the chipmaker's gross margin -- the difference between revenue and cost of goods sold -- by 2.6 percentage points and sales by 6.6 percent.

TSMC has said with the popularity of AI applications on an uptrend and more computing power required, global demand for its advanced chips will increase this year.

The chipmaker has raised its sales growth forecast for 2025 to about 30 percent in U.S. dollar terms, up from its previous estimate of 24-26 percent as its 3 nanometer and 3nm process drive sales growth, saying solid demand for emerging technologies, such as high performance computing (HPC) devices, will boost growth.

The 3nm process is the latest technology TSMC has started to mass produce. The company is developing the more sophisticated 2nm process, which is scheduled to begin commercial production later this year.