TSMC August Revenue Jumps 34% on AI Chip Boom, Driving Global Semiconductor Frenzy

TradingKey - On Wednesday, global semiconductor foundry leader TSMC disclosed its August performance report, showing total revenue reached NT$335.77 billion, a substantial year-over-year (YoY) increase of 33.8% and a month-over-month (MoM) rise of 3.9%, continuing its strong growth momentum throughout 2024. From January to August 2024, the company's cumulative sales have exceeded NT$2.43 trillion, with a YoY growth of 37.1%.

The core driving force behind this impressive performance comes from the explosive demand for high-end chips in the artificial intelligence (AI) industry. Crucially, as NVIDIA's key supplier providing foundry services for its AI chips, TSMC receives solid support from NVIDIA's previous clear statement that the AI chip demand outlook is "extremely strong," providing a firm foundation for TSMC's growth.

Continuous market share expansion serves as another important indicator of TSMC's leading position. According to the latest data from TrendForce, TSMC's market share in the global semiconductor foundry market soared to 70.2% this quarter, up 2.6 percentage points from the previous quarter's 67.6%.

Although the industry's overall revenue grew 14.6% MoM, TSMC's growth rate still significantly outpaces its peers. In comparison, major competitor Samsung's market share slightly declined from 7.7% to 7.3%. Analysts generally expect optimistically that TSMC's market share could exceed 75% by 2026, consolidating its absolute dominant position in the industry.

TSMC is also making active progress in technological innovation. According to recent reports, the company is collaborating with equipment manufacturers and compound semiconductor partners to lead the development of application solutions using 12-inch single-crystal silicon carbide (SiC) as thermal substrate material, aiming to replace traditional alumina, sapphire, or ceramic substrates.

SiC material has previously been widely used in power semiconductors, new energy vehicles, and energy storage fields. This expansion introduces it into AR smart glasses lenses and advanced 3D IC packaging technology, potentially enhancing chip heat dissipation efficiency and integration, providing technical support for future high-performance computing and consumer electronic devices.

The company's U.S.-listed shares closed up 1.51% on Tuesday at $250.92, with a cumulative gain of over 40% in the past six months. TradingKey Stock Score has given it a "Buy" rating of 6.92 points, while data shows Wall Street analysts have set a target average price as high as $270.047 for the stock.