In Silico

Taiwan Semiconductor Manufacturing Company (TSMC) has caught the AI wave, posting double-digit growth for the first time since 2022, with a 17% surge in sales for the first quarter of 2024.

The world’s largest chipmaker, TSMC manufactures chips designed by the likes of Nvidia and Qualcomm. The output of the Taiwanese titan ends up in a countless number of products that make modern life tick, from smartphones to smart cars — and Apple is “by far” TSMC’s largest customer, spending tens of billions of dollars on TSMC chips for its Macs and iPhones.

After the pandemic-fueled tech binge cooled off, TSMC had a more sluggish 2023, reporting its first back-to-back quarterly sales decline since 2017. However, the AI revolution has reinvigorated demand for TSMC's high-end chips, with companies scrambling to stock up on the silicon that powers AI, bolstering the chipmaker’s sales in the most recent quarter: revenue in March alone was reportedly up 34% year-on-year.

TSMC's dominance remains a political football in the ongoing tensions between China and the US. In an attempt to bring more advanced semiconductor manufacturing back to American shores, the government has been working to boost its domestic semiconductor industry — on Monday announcing that TSMC could receive up to $11.6bn in grants and loans to help build its factories in Arizona.