Taiwan Semiconductor Manufacturing Co. (TSMC) reported an 11% fall in sales for the third quarter, exceeding the average forecast of NT$531.5 billion. Artificial intelligence players’ increased demand countered falling smartphone and laptop chip sales. TSMC’s principal chipmaker to Apple and Nvidia reported NT$546.7 billion ($17 billion) in sales from July to September, an 11% decrease from the prior year.
The data centers that power AI are increasing demand for TSMC’s largest clients, including Nvidia, and memory utilized in those systems. TSMC is the principal contract producer of Nvidia’s AI accelerator chips, which are increasingly being used to train massive data models. Strong demand for TSMC’s sophisticated packaging solution might boost sales as well.
