TSMC Watch posted an update
TSMC says high-performance computing, including chips for AI customers, generated 68% of its third-quarter revenue, up from 66% in the previous quarter. The company’s HPC revenue also rose 22% sequentially, according to figures reported by The Globe and Mail.
Why it mattersThe same report says TSMC’s gross margin dipped to 66.4% from 67.7% in the prior quarter, even as it posted record quarterly results. The chipmaker expects full-year revenue growth of 44% in US-dollar terms. AI demand is doing serious work in TSMC’s numbers, though the margin dip shows that growth does not make the production bill disappear.
Discuss: With AI-related computing driving such a large share of TSMC’s revenue, should investors focus more on demand growth or on the costs and margins required to supply it?
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