Strong AI demand spurs TSMC’s first-quarter profit by 9%

• Shipments of 3-nanometre accounted for 9% of total wafer revenue, followed by 5-nanometre for 37% and  7-nanometre for 19%.

Strong demand for AI helps Taiwanese chipmaker TSMC to grow its first-quarter net profit by nine per cent to T$225.5 billion ($6.97 billion) from T$206.9 billion ($6.4 billion) a year earlier.

TSMC, the world’s largest contract chipmaker, reported a net revenue increase of 16.5 per cent from a year ago to NT$592.64 billion ($18.33 billion).

TSMC, which has Apple and Nvidia has its clients,  currently produces 3-nanometre chips and plans to commence mass production of 2-nanometre chips in 2025. Typically, a smaller nanometre size yields more powerful and efficient chips. 

Strong demand for AI chips led by the proliferation of large language models such as ChatGPT and Chinese clones has caused TSMC’s shares to surge 56 per cent in the past one year.

According to the earnings report, in the first quarter, shipments of 3-nanometre accounted for 9 per cent of total wafer revenue; 5-nanometre accounted for 37 per cent; 7-nanometre accounted for 19 per cent. Advanced technologies, defined as 7- nanometre and more advanced technologies, accounted for 65 per cent of total wafer revenue.