TSMC reports 45% sales surge to $14.5 billion in July

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, said July revenue jumped 45% from a year earlier to $14.5 billion as demand for AI-related semiconductors surged.

The 44.7% year-on-year increase to 467.58 billion new Taiwan dollars underscores how AI infrastructure spending by tech giants is fueling growth across the semiconductor supply chain. TSMC makes chips for Nvidia, Google and other AI leaders, so its monthly sales serve as a real-time barometer of Big Tech’s capital outlays.

Investors are watching closely because AI capex—billions poured into data-center hardware—has driven a recent sell-off in chip stocks despite strong underlying demand. The PHLX Semiconductor index is down 15% from its June peak but remains up 72% for the year, while TSMC’s own shares have climbed 50%. Analysts warn monthly figures can swing, but July’s performance suggests demand hasn’t faltered. “Demand in the semiconductor industry can shift quickly,” said Ben Barringer, head of technology research at Quilter Cheviot. “Monthly numbers can jump around, but TSMC’s ongoing expansion gives reason to believe this level of production can continue.”

TSMC’s second-quarter results showed AI chips—booked under high-performance computing—already account for two-thirds of revenue. The company now expects full-year revenue to rise about 40% and has lifted capital spending to between $60 billion and $64 billion for 2024, underscoring confidence in the AI cycle. Chairman C.C. Wei called AI-related demand “extremely robust” and forecast 2026 revenue growth above 40% in U.S. dollar terms. European peers like ASML, Infineon and STMicro gained 2% or more on the news, signaling that the AI-driven rally still has legs even amid broader market caution.