TSMC posts 30% sales growth as AI demand drives semiconductor boom despite geopolitical risks

TSMC Sales Grow 30% on Sustained Global Demand for AI Hardware

Taiwan Semiconductor Manufacturing Co.'s sales rose 30% in the first two months of the year, buoyed by the robust pace of AI infrastructure construction prior to the outbreak of conflict in the Middle East. Revenue in January and February together grew to NT$718.9 billion ($22.6 billion), the company said Tuesday. Analysts on average expect a 33% increase in the first quarter. February sales rose 22%, with growth affected by the Lunar New Year holidays, which fell in January in 2025. The go-to chipmaker for Nvidia Corp., Advanced Micro Devices Inc. and Broadcom Inc. serves as a barometer for the global AI industry, with attention now on how the US and Israel's strike on Iran will affect appetite to build data centers and other digital infrastructure. Iranian Missiles Shake Gulf Finance's Image of Stability Why the AI Boom Will Make Phones, Cars, Devices More Expensive Drone Strikes on Gulf Data Centers Expose AI Boom's New Risks Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Microsoft Corp. have earmarked more than $650 billion in spending this year, but warnings over overcapacity and uncertainty over how to monetize the technology linger. The construction of AI data centers can cost tens of billions of dollars and require coordination with power generation and electrical grid operators, as well as suppliers and debt providers. Oracle Corp. and OpenAI have scrapped plans to expand a flagship artificial intelligence data center in Texas after negotiations dragged over financing and OpenAI's changing needs, Bloomberg News reported last week.

TSMC February revenue rises 22% YoY as AI chip demand remains strong - The Economic Times

For the first two months of 2026, TSMC reported consolidated net revenue of approximately $22.9 billion, reflecting a 29.9% year-on-year increase compared with the same period in 2025.Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, reported a strong rise in net revenue for February, underscoring sustained demand for advanced semiconductors amid a global build-out of artificial intelligence infrastructure. The company said its consolidated net revenue for February 2026 stood at NTD 317.66 billion (around $10.1 billion), representing a 22.2% increase compared with February 2025, although the figure marked a 20.8% decline from January 2026. For the first two months of 2026, TSMC reported consolidated net revenue of NTD 718.91 billion (approximately $22.9 billion), reflecting a 29.9% year-on-year increase compared with the same period in 2025. The strong growth highlights robust demand for TSMC's advanced chips, which are widely used in high-performance computing, smartphones and artificial intelligence applications by major global technology companies. TSMC shares closed at NTD 1,850 on Tuesday (March 10), up 16.72% year-to-date, according to data from Google Finance. According to a report by Focus Taiwan earlier this month, TSMC aims to complete a new fabrication plant in Tainan by 2028 as part of an aggressive capacity expansion driven by global demand for artificial intelligence chips. It said that the world's largest contract chipmaker submitted development proposals for public review on February 12 as part of the mandatory environmental impact assessment process. The project is situated on a 15.46-hectare site within Development Block A of the Tainan Science Park. TSMC planning documents indicate that construction is expected to begin later this year. The company expects "project completion and occupancy permits slated for 2028" following the conclusion of the environmental review phase. A committee meeting to discuss the assessment is scheduled for March 26, following the end of a 20-day public notice period. The report said expansion into Tainan follows a broader trend of increasing domestic manufacturing capabilities to meet the requirements of the AI sector.

AI Boom Powers TSMC, Chip Giant Posts 30% Sales Surge

TSMC Sales Jump 30% as Global AI Hardware Demand Drives Semiconductor Boom Taiwan Semiconductor Manufacturing Company (TSMC) has reported a sharp rise in sales at the start of 2026, driven by strong global demand for chips used in artificial intelligence systems. The said revenue for January and February 2026 reached about NT$718.9 billion, marking a nearly 30% increase from the same period last year. The growth reflects rising orders for advanced semiconductors that power AI models, cloud computing, and high-performance data centers.