TSMC's July sales hit record high

Taipei, Aug. 10 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) on Monday reported record sales for July, up more than 44 percent from a year earlier, with analysts attributing the growth to strong global demand for the chipmaker's advanced chipmaking processes amid the AI boom.

In a statement, the world's largest contract chipmaker said consolidated sales reached NT$467.58 billion (US$14.51 billion), surpassing the previous record of NT$442.68 billion set in June. July sales rose 44.7 percent from a year earlier and 5.6 percent from June.

TSMC said consolidated sales for the first seven months of this year totaled NT$2.87 trillion, up 37 percent from the same period a year earlier.

Analysts said higher shipments of chips produced using TSMC's advanced manufacturing processes, particularly its 2-nanometer technology, the latest technology which has entered commercial production, carrying a higher price tag, drove July sales higher.

At an investor conference in mid-July, TSMC forecast third-quarter revenue of between US$44.6 billion and US$45.8 billion. Based on an exchange rate of NT$32 to the U.S. dollar TSMC used in the forecast, the forecast would translate into consolidated sales of between NT$1.43 trillion and NT$1.47 trillion.

If the forecast is met, analysts said, TSMC's average monthly consolidated sales for August and September would range between NT$479.81 billion and NT$499.01 billion, setting new monthly records.

TSMC has repeatedly expressed confidence in the long-term growth of AI. At the July investor conference, the company forecast that 2026 sales would grow by slightly more than 40 percent in U.S. dollar terms, marking the second upward revision to its sales guidance this year.

At an investor conference in mid-April, TSMC raised its 2026 revenue growth forecast in U.S. dollar terms to more than 30 percent, up from its January projection of growth of closer to 30 percent.

The company also raised its 2026 capital expenditure forecast to between US$60.0 billion and US$64.0 billion, an increase from its previous forecast of between US$52.0 billion and US$56.0 billion announced in mid-April, citing strong global demand for 5G, AI applications and high-performance computing devices.