Taiwan Semiconductor Manufacturing Co. reported record monthly revenue for August, as demand for advanced chips used in artificial-intelligence servers continued to support growth at the world's largest contract semiconductor manufacturer.
TSMC generated 514.8 billion New Taiwan dollars, equivalent to about $16.35 billion, in August revenue. Sales jumped 53.3% from a year earlier and rose 10.1% from July, extending the company's run of year-over-year monthly revenue growth to four consecutive months.
TSMC is a major manufacturer of advanced processors used in AI data centers and other high-performance computing systems. Technology companies have been investing heavily in data centers and accelerators, increasing demand for advanced semiconductor manufacturing processes.
The company had already pointed to strong AI-related demand in July, when management described it as "extremely robust." TSMC's second-quarter profit increased more than 77% from a year earlier, while the company projected third-quarter revenue of between $44.6 billion and $45.8 billion.
TSMC shares closed 0.61% lower Thursday before the August revenue figures were released.
The company has also widened its lead in the global semiconductor foundry industry. TrendForce data showed TSMC controlled 72.5% of the worldwide foundry market during the second quarter.
Samsung Foundry, TSMC's nearest competitor, held a 5.9% share, while China's Semiconductor Manufacturing International Corp., or SMIC, ranked third with 5.4%. TSMC's market share was therefore more than 12 times that of Samsung during the quarter.
Advanced manufacturing accounted for a significant portion of the demand. TrendForce said strong orders for AI-server processors kept TSMC's 5-nanometer, 4-nanometer and 3-nanometer production capacity fully booked during the second quarter.
Growth extended beyond TSMC. The world's 10 largest semiconductor foundries generated nearly $53.49 billion in combined second-quarter revenue, according to TrendForce, setting an industry record.
TSMC operates primarily as a contract manufacturer, producing semiconductors designed by other companies. Its manufacturing operations cover products used in AI computing, high-performance computing, smartphones and other electronics.
AI processors increasingly rely on advanced manufacturing nodes to accommodate complex designs and high transistor densities while controlling power consumption. That has increased the importance of leading-edge fabrication processes as chip designers develop processors for training and running large AI models.
TSMC is also preparing for another transition in semiconductor manufacturing technology. The company and Dutch semiconductor-equipment manufacturer ASML this week announced an initiative involving High Numerical Aperture extreme-ultraviolet lithography, commonly known as High NA EUV.
TSMC plans to introduce High NA EUV into large-scale manufacturing of advanced nodes beginning in 2030. The technology is designed to allow semiconductor manufacturers to print smaller and increasingly complex features onto chips.
High NA EUV represents an evolution of the extreme-ultraviolet lithography systems already used to manufacture advanced semiconductors. The technology is intended to address manufacturing challenges that emerge as chipmakers continue shrinking features and increasing transistor density.
TSMC expects use of the technology to expand as AI applications require increasingly complex transistor architectures.
