TSMC expects 'insatiable' AI demand to drive Q2 sales up by 30%

THE world's largest manufacturer of microchips says it expects second quarter sales for 2024 to be up by 30%.

Taiwan Semiconductor Manufacturing Co (TSMC) - one of the main suppliers to Nvidia and Apple - also say the huge demand for its products is being driven by the needs of the artificial intelligence industry.

During the company's first-quarter earnings call, the CEO - CC Wei - described the AI market as 'insatiable'.

"Almost all the AI innovators are working with TSMC to address the insatiable AI-related demand for energy efficient computing power," he said.

"AI-related data centre demand is very, very strong."

He also added that around 14% of all revenue from 2024 for TSMC was connected to serving the needs of the AI industry - more than double that of 2023. It is anticipated that, by 2028, the figure would rise to more than 20%.

First-quarter net profit for TSMC saw a rise to $6.98 billion from $6.36 billion in Q1 2023.

The company also announced it would press ahead with plans to build plants in the US, Germany and Japan, as well as raising its investment in the Arizona site.