TSMC reports second-highest sales in August

Taipei, Sept. 10 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) on Wednesday reported its second-highest monthly sales ever in August, up more than 33 percent from a year earlier, which market analysts attributed to strong demand for artificial intelligence applications.

In a statement, the world's largest contract chipmaker said it posted NT$335.77 billion (US$11.08 billion) in consolidated sales, up 33.8 percent from a year earlier and 3.9 percent from a month earlier.

According to TSMC, the August figure trailed only the historic high of NT$349.57 billion recorded in April.

For the first eight months of this year, TSMC's consolidated sales rose 37.1 percent year-on-year to NT$2.43 trillion, company data showed.

At an investor conference in mid-July, TSMC forecast third-quarter sales would range between US$31.8 billion and US$33.0 billion, with the median representing an increase of 8 percent from the second quarter.

TSMC based its third-quarter forecast on an exchange rate of NT$29 to the U.S. dollar. Converted into Taiwan dollars, the guidance translates to sales between NT$922.2 billion and NT$957 billion.

During July and August, TSMC's aggregate sales reached NT$658.94 billion. Analysts said it is very likely the company will achieve its third-quarter guidance.

Analysts added that, with the U.S. dollar currently trading above NT$30, the weaker-than-expected Taiwan dollar is expected to help TSMC report higher sales and stronger gross margins.

The assumed exchange rate of NT$29 implies the Taiwan dollar could appreciate 6.6 percent from the second quarter. According to TSMC, such an appreciation would 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.

While U.S. tariff policies have created uncertainties and posed risks to the global economy, TSMC said strong AI demand and the need for greater computing power are expected to boost advanced chip sales.

TSMC has raised its 2025 sales growth forecast to about 30 percent in U.S. dollar terms, up from its previous estimate of 24-26 percent, with its 3-nanometer and 5-nanometer processes likely to drive growth on the back of strong demand for emerging technologies such as AI and high-performance computing (HPC) devices.

In the second quarter, the 3-nanometer process accounted for 24 percent of TSMC's total sales, while the 5-nanometer process made up 36 percent. The 3-nanometer process is the latest technology TSMC has begun commercial production on.