TSMC's Revenue Soars as Demand from Apple and NVIDIA Fuels Growth Amid U.S. Policy Shifts

In November, TSMC announced its revenue for October, indicating a considerable performance boost with sales reaching approximately $9.79 billion. This marks a monthly increase of 24.8% compared to September and a staggering annual growth of 29.2%. The consistent upward trend over the past ten months underscores significant and ongoing demand from key clients such as Apple and NVIDIA.

The surge in TSMC’s figures appears to be driven by robust demand for Apple’s newly launched iPhone models and NVIDIA’s advanced chips, despite the company not explicitly detailing growth factors in their statement. With clients like Apple and NVIDIA, who have substantial requirements for TSMC's cutting-edge chips, the outlook for the company remains promising. Market expectations are inclined towards TSMC maintaining this growth trajectory amid strong demand in the AI sector.

Additionally, the U.S. government's CHIPS and Science Act continues to be a subject of sector scrutiny concerning potential changes under a shifting administration. Reports suggest TSMC and other manufacturers are poised to receive significant subsidies under this legislation. While no specific timeframes or figures have been formally confirmed, the release of these funds aims to support new semiconductor fabrication facilities in the U.S., notably TSMC’s projects in Arizona.

The focus on returning chip production to domestic grounds through these subsidies ignites concerns regarding the global semiconductor supply chain. Critics suggest such moves, spurred by industrial and trade policy motivations, might eventually challenge U.S. interests. Despite the tensions, the strategic goal remains clear: bolstering U.S. semiconductor manufacturing capabilities amid a highly competitive global market.