Due to the recovery of consumer electronics products and continuous growth in demand for artificial intelligence (AI), TSMC's revenue in April increased by 60% compared to the same period last year, with a monthly increase of 20.9%, reaching 236 billion New Taiwan Dollars (7.3 billion US dollars), the second highest in history, second only to the highest record of 243.2 billion New Taiwan Dollars set in October 2023. TSMC's cumulative revenue for the first four months was NT $828.665 billion, an increase of 26.2% compared to the same period last year.
After accelerating its revenue growth to 34.3% in March, TSMC expects its revenue to grow by about one-third in the second quarter, largely driven by strong demand for AI semiconductors. The global smartphone industry resumed growth in the first three months of this year, including the highly competitive Chinese Mainland market, which may drive the increase of orders for TSMC's traditional pillar mobile chips.
TSMC experienced a sluggish demand for consumer electronics products in 2023, and Nvidia's highly sought after artificial intelligence chips helped alleviate its demand for personal electronics products. Although TSMC CEO Wei Zhejia has issued warnings about the speed of any recovery.
The legal representative pointed out that the high demand for high-performance computing (HPC) and strong demand for advanced 3nm and 5nm process technology from customers have contributed to the continuous increase in capacity utilization, which is the main driving force for TSMC's revenue growth in April. The legal representative stated that Apple's continuous production of 3nm chips, coupled with Intel's start of mass production in the second quarter, and continued support from HPC orders such as Nvidia and AMD, are expected to drive TSMC's impressive performance with the expected increase in chips for MediaTek's new flagship Dimensity 9300+.
TSMC estimates that its revenue for the second quarter will be approximately 19.6-20.4 billion US dollars, with a quarterly increase of approximately 6% based on the median. According to corporate estimates, TSMC's average monthly revenue in May and June will be approximately NT $198.6-21.5 billion.
The contribution of server artificial intelligence to performance is expected to double, and TSMC expects its US dollar revenue to grow by 21% -26% this year, higher than the 14% -19% level of wafer foundry industry.
