TSMC Weak Sales But AI Demand Offsets Slump
Third-quarter sales are down 11% as the sector works through inventory
Orders for AI chips are strong but hitting supply constraints
Taiwan Semiconductor Manufacturing Co.’s third-quarter revenue slid less than projected as demand from artificial intelligence players helped offset sagging smartphone and laptop chip sales.
Tweet on TSMC chips slump
@TSMC Weak Sales But AI Demand Offsets Slump
Orders for AI chips are strong but hitting supply constraints, Bloomberg reports#temc #chips #ai https://t.co/ATsHOFZsWL— The_Journalbiz (@the_journalbiz) October 6, 2023
TSMC news, Bloomberg
TSMC, the main chipmaker to Apple Inc. and Nvidia Corp., reported July-September revenue of NT$546.7 billion ($17 billion) according to Bloomberg’s calculations.
That marked an 11% decline on the prior year but beat the average estimate of NT$531.5 billion.
Data centers driving AI are boosting demand for some of TSMC’s biggest clients, including Nvidia, as well as that of memory used with those systems.
The preliminary sales numbers come as investors look for signs that climbing orders for AI chips are overcoming supply constraints and translating into sales, and may alleviate concerns about a prolonged sector-wide slump.
TSMC is the primary contract manufacturer of Nvidia’s AI accelerator chips, now sought widely to train large data models such as the one underpinning OpenAI’s ChatGPT.
Strong demand for TSMC’s advanced packaging service may also bolster sales, even as the semiconductor sector continues to work through excess inventory, according to Bloomberg
