TSMC Posts Strong January Revenue Growth on Surging AI and Data Center Chip Demand
Taiwan Semiconductor Manufacturing Company (TSMC) recorded a sharp increase in revenues in January, driven by sustained global momentum in artificial intelligence technologies and rising demand for data center chips.
The company’s revenue rose 37% year-on-year to TWD 401.3 billion (approximately USD 12.7 billion), exceeding its full-year revenue growth forecast of 30% and marking the fastest growth pace in several months.
TSMC has emerged as one of the key beneficiaries of the global AI investment boom, given its pivotal role in manufacturing advanced semiconductors used in AI accelerators. These chips are essential for major technology companies operating large-scale data centers and developing next-generation AI models.
Growing demand for data center semiconductors has prompted TSMC to plan capital expenditures of up to USD 56 billion this year, representing an increase of nearly 25% compared to the previous year. The investment aims to expand production capacity and strengthen the company’s ability to meet accelerating global demand.
However, the scale of spending by major technology companies has raised concerns among investors regarding the sustainability of returns from AI-related investments and the potential risk of an overheated investment cycle followed by a market correction.
Analysts note that while TSMC’s strong results underscore the resilience of demand for advanced chips, they also highlight the sector’s sensitivity to any potential slowdown in investment activity or shifts in global technology spending appetite.