TSMC records monthly sales high in October

Taipei, Nov. 10 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) on Monday reported its highest-ever monthly sales in October with market analysts attributing the growth to solid global demand for artificial intelligence applications.

In a statement, the world's largest contract chipmaker said it generated NT$367.47 billion (US$11.85 billion) in consolidated sales in October, up 16.9 percent from a year earlier and up 11 percent from a month earlier.

The October figure smashed the previous record of NT$349.57 billion seen in April, TSMC data showed.

In the first 10 months of this year, TSMC's consolidated sales rose 33.8 percent from a year earlier to NT$3.13 trillion, the data indicated.

The latest sales echoed TSMC's earlier forecast that demand for AI gadgets remains strong, while the non AI end-user market kicked off a mild recovery.

At an investor conference in mid-October, TSMC gave guidance saying its fourth quarter sales are expected to range from US$32.2 billion-US$33.4 billion, with the median figure expected to fall 1 percent.

The fourth quarter is a traditional slow season for the semiconductor industry but the guidance showed such slow season effects will be largely offset by AI demand, analysts said.

TSMC made its fourth quarter sales estimate based on an exchange rate of NT$30.6 to US$1. On that basis, the company's fourth quarter sales will range from NT$988.32 billion-NT$1.02 trillion in Taiwan dollar terms.

TSMC is expected to post NT$309.0 billion to NT$327.3 billion in monthly sales in November and December based on the guidance.

The chipmaker has forecast that the compound annual growth rate (CAGR) of the company's sales from AI-related chips from 2024-2029 is expected to exceed an earlier estimate of 45 percent, reflecting stronger-than-anticipated global demand for computing capabilities during the current AI era.

Also in October, TSMC forecast the company's sales will grow almost 35 percent in 2025, an upgrade from an earlier 30 percent increase estimate.