Chip giant TSMC's April revenue jumps 60% on-year

Core Insights - TSMC reported a significant revenue increase of nearly 60% year-on-year for April, driven by high demand for advanced semiconductors used in AI hardware [1] - The company controls over 50% of the global semiconductor market and supplies chips for major tech companies, including Apple and Nvidia [1] - TSMC's consolidated revenue for April reached approximately NT$236.02 billion (US$7.2 billion), marking a 59.6% increase from April 2023 [1] Financial Performance - In the first quarter, TSMC's revenue rose 13% year-on-year to US$18.87 billion, with expectations of a 27.6% increase in the second quarter [2] - The demand for chips has surged globally due to the success of AI applications like OpenAI's ChatGPT [2] Geopolitical Context - TSMC's operations are primarily based in Taiwan, which faces geopolitical tensions with China, raising concerns about the stability of the semiconductor supply chain [2] - The U.S. has emphasized the importance of TSMC, with 92% of its leading-edge chips sourced from the company in Taiwan [4] U.S. Expansion Plans - TSMC announced plans for a third factory in the U.S., increasing its total investment in the country to US$65 billion [5] - The company has faced challenges in its U.S. projects due to a shortage of skilled labor necessary for chip manufacturing [5] - TSMC also launched an US$8.6 billion plant in Japan, indicating a strategic move to diversify production locations [5] Natural Disaster Impact - A recent earthquake in Taiwan prompted TSMC to reassure customers about minimal disruption to production [6]