TSMC Jumps on 40% Year-Over-Year Q2 Revenue Increase

Taiwan Semiconductor Manufacturing Company’s (TSM) American depositary receipts (ADRs) rose in intraday trading Wednesday after the chipmaker released revenue figures for June, offering a full picture of the company’s second-quarter performance.

June revenue rose 33% from a year earlier, with TSMC reporting 207.87 billion New Taiwan dollars ($6.38 billion) in sales for the month.

Added to its performance from April and May, the June data puts TSMC’s second-quarter revenue at NT$673.51 billion ($20.67 billion), about NT$20 billion better than what analysts had projected and 40% above last year’s mark of NT$480.84 billion.

AI Boom Still Boosting TSMC Revenue

The company, which supplies tech giants like Apple (AAPL) and Nvidia (NVDA), has been a beneficiary of the artificial intelligence (AI) boom, as increased demand for chips to make AI products has offset lower demand for its other products, like semiconductors used in the production of cars.

TSMC also beat its own revenue projections for the quarter, which it said in April was between $19.6 billion to $20.4 billion. First-quarter revenue was a 17% increase from the first quarter of fiscal 2023, with analysts noting at the time that AI and rising cryptocurrency prices were potential explanations for the rise in sales.

Earlier this year, the Biden administration announced plans to award TSMC up to $6.6 billion in grants from the CHIPS and Science Act to help the chip maker increase its production capacity in the U.S. TSMC started building a factory in Arizona in 2021, and said when the federal funding was announced in April that it planned to add a third factory to the site with plans for the three facilities to be operational in 2025, 2028, and 2030.

Investors will get more detail on the company’s second-quarter performance when it reports earnings July 18.

ADRs of TSMC rose 2.5% to $189.17 as of 10:49 a.m. ET Wednesday, putting them up more than 80% so far this year.