TSMC’s Growth Accelerates as AI Demand and Smartphone Recovery Boost Revenue

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

---

Image Source: Taiwan Semiconductor Manufacturing.

Taiwan Semiconductor Manufacturing Company (TSMC) is experiencing rapid growth fueled by surging demand for artificial intelligence (AI) and a revival in the smartphone market. The world’s largest contract chipmaker has become a critical player in the global tech supply chain, producing about 90 percent of the world’s most advanced semiconductors used in AI and high-performance computing.

Once considered a steady but unexciting company, TSMC has attracted new investor attention amid the AI boom. Since early 2023, the company’s market value has soared by more than one trillion dollars, reflecting its dominant position in the production of advanced processors essential for data centers and cloud computing. In the third quarter, chips used for high-performance computing accounted for 57 percent of TSMC’s total sales.

At the same time, its legacy smartphone business has shown renewed strength. After several years of sluggish demand caused by inflation and slower consumer spending, the smartphone market has started to recover. Apple’s strong performance, highlighted by record quarterly revenue of 102.5 billion dollars, has contributed significantly to TSMC’s rebound. Apple remains one of TSMC’s largest customers, representing nearly a quarter of its total revenue in 2024. Smartphones made up 30 percent of TSMC’s third-quarter sales, signaling a clear recovery.

Overall, TSMC reported third-quarter revenue of 33.1 billion dollars, up 41 percent from a year earlier and 10 percent from the previous quarter. Earnings per American depositary receipt climbed 39 percent to 2.92 dollars. Despite its strong momentum and multiple growth drivers, TSMC’s stock remains attractively valued, trading at 30 times earnings compared with a multiple of 31 for the S&P 500.

With AI and smartphone markets both fueling its performance, TSMC continues to strengthen its leadership in advanced chip manufacturing and global technology innovation.