Type to search

TSMC Sees ‘Golden Age’, With AI Fuelling 10% Chip Growth

Taiwanese group hails sector’s prospects after chip designer Nvidia’s upbeat earnings forecast lifts tech stocks, amid a wave of optimism over AI

Japan will work with the US to launch a manufacturing base for advanced 2-nanometre semiconductors as early as the 2024-2025 financial year, Nikkei Asia reported.
Taiwan's TSMC is the global leader in 2-nanometre chips. A TSMC image of one of its wafers.


The world’s leading chipmaker, Taiwan’s TSMC, has predicted a “golden age of opportunity with AI”, after an upbeat earnings forecast from leading chip designer Nvidia.

Taiwan Semiconductor Manufacturing Company, as the group is formally known, forecast on Thursday that the global chip industry, excluding memory chips, would enjoy annual revenue growth of 10%.

“This is a new golden age of opportunity with AI,” senior vice-president Cliff Hou, who was speaking at an event in Hsinchu, where the company is headquartered, said.


ALSO SEE: Microsoft Says UAE Deal Could See Transfer of US Chips, AI Tech


TSMC is a major supplier to both Nvidia and Apple, America’s two biggest tech conglomerates. And Hou’s remark came after a stronger-than-expected revenue forecast from Nvidia late on Wednesday US time, which lifted shares of the AI chipmaker and other tech stocks.

TSMC has estimated second-quarter sales may rise as much as 30% as it rides a wave of demand for semiconductors used in artificial intelligence applications (AI).

World Semiconductor Trade Statistics, meanwhile, has forecast growth of 13% for the global semiconductor market in 2024.


Nvidia shares top $1,000 on AI optimism

Technology stocks have gained sharply since last year, led by Nvidia amid optimism over AI.

Nvidia forecast that its quarterly revenue would be above estimates and announced a stock split, lifting shares to a record-high territory and impressing investors who have tripled the chipmaker’s market value over the past year.

Nvidia shares had risen by 91% this year prior to the close of US trading, and jumped 5.9% to $1,005 in extended trade, peaking above the psychologically important $1,000 mark and adding about $140 billion in stock market value.

The Santa Clara, California-based company said it would split its stock ten-for-one, on June 7. It also said it was raising its quarterly dividend by 150% to 1 cent per share, on a post-split basis.

“Death, taxes, and NVDA beats on earnings. Even in the face of huge expectations, the company once again stepped up and delivered,” Ryan Detrick, chief market strategist at Carson Group, said. “The always important data centre revenue was strong, while future revenue was also impressive.”

Nvidia’s earnings report could add fresh fuel to a stock market rally that has lifted indexes to record highs this year.

Following Nvidia’s results, shares of rival AI-related chipmakers Advanced Micro Devices and Broadcom each rose about 2%.

Alphabet, Microsoft, Amazon.com and other technology companies have been competing for a limited supply of Nvidia’s high-end chips as they race to dominate AI computing.

During a conference call with analysts, CEO Jensen Huang said Nvidia’s upcoming Blackwell AI chips will ship in the current fiscal quarter, with production increasing in the following quarter.

Chief financial officer Colette Kress said demand for Blackwell chips could exceed supply “well into next year.”

Nvidia’s contract chipmaker TSMC has been working to increase its advanced packaging capacity, a key supply-chain constraint for the processors. The Taiwanese gropu said in April it expects to more than double its advanced packaging capacity this year.

Nvidia forecast fiscal second-quarter revenue of $28 billion, plus or minus 2%. Analysts on average were expecting revenue of $26.66 billion, according to LSEG data.


  • Reuters with additional editing by Jim Pollard



US Set to Double Tariffs on Chinese Semiconductors in 2025 – TH

Apple Working With TSMC to Make its Own AI Chips: WSJ

Biden Ramps US Tariffs on Chinese EVs, Metals, PV Cells, Chips

Chinese Firms Close in on High-End AI Memory Chips Coup

TSMC Wins Billions in US Aid After Deal on 3rd New Arizona Fab

TSMC Restarts Taiwan Fabs After Earthquake Shutdowns

Japan to Pump $4.9bn Into Second TSMC Chip Factory Plan

TSMC’s AI Bet Triggers Mega Chip Rally, Except in China


Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.


AF China Bond