Taiwan Semiconductor Manufacturing Company "TSMC" reported a strong 36% jump in its quarterly revenues, in line with analysts' elevated expectations, further affirming the continuing strong momentum in global demand for artificial intelligence devices and components, according to Bloomberg News.
According to calculations based on the company's official data, revenues for the three months ended in June were approximately 1.27 trillion New Taiwan dollars (equivalent to 39.6 billion US dollars), driven by the exceptional performance of June alone, which saw a record sales jump of 68% compared to the same month last year.
The Taiwanese company, which is the main supplier to "Nvidia" and "Apple", serves as a key indicator of the extent of global artificial intelligence infrastructure expansion, due to its control over the production of the vast majority of the world's most advanced chips used in data centers and smartphones.
The CEO of the company, C.C. Wei, previously warned that "TSMC" would not be able to meet the increasing demand led by American customers for years to come, despite the activation of new production capacities in the United States over the next few years.
The shortage issue is not limited to advanced chips alone; the South Korean company "SK Hynix" (a memory chip manufacturer) expects the current shortage of memory chips to continue beyond 2030, driven by the massive spending of data centers on traditional memory and high bandwidth memory (HBM) chips that support artificial intelligence systems.
In this context, analysts from "Bloomberg Intelligence" indicated that the demand for AI accelerators and server CPUs keeps production capacities for 3nm and 5nm technologies under severe pressure, making production volume the main driver of profits, with expectations for gross profit margins to reach targeted maximum levels.
Despite these strong numbers, investor concerns remain as major data center operators like "Alphabet" (the parent company of Google) and others continue to pour hundreds of billions of dollars annually into infrastructure equipment. A large portion of this spending comes supported by inflated loans, amid the absence of a guaranteed path to achieve profitable returns that compensate for these massive investments.
It is worth noting that "TSMC" based in the Taiwanese city of "Hsinchu", has announced plans to allocate a capital budget close to a record level of 56 billion dollars this year, and the company is set to announce its comprehensive financial results and future outlook updates on spending size next Thursday.