Taiwanese contract chip manufacturer TSMC reported strong financial results for November. The company’s revenue increased year-on-year by 34% to $8.5 billion, although it saw a sequential decline of 12.2%. Since the start of 2024, TSMC’s total revenue has risen by 31.8%, amounting to $80.6 billion.
The first two months of the fourth quarter enabled TSMC to boost revenue by 31.4%. According to Bloomberg, analysts predict that by the end of this three-month period, TSMC’s revenue could grow by 36.3%. This performance aligns with the company’s strong position in the booming artificial intelligence (AI) market. TSMC’s shares have surged by approximately 80% this year as the demand for computing accelerators, such as those produced for Nvidia, continues to rise.
Market Position and Competitors
TSMC maintains a dominant 65% share of the contract chip manufacturing market, according to TrendForce. This stronghold ensures the company’s leading position remains secure, even as competitors strive to gain ground. Intel and Samsung have both aimed to challenge TSMC’s market leadership by the end of the decade. However, Intel is currently navigating a challenging restructuring phase and recently lost its CEO. Meanwhile, Samsung’s revenue from specialized chip services has declined, despite a generally favorable market environment.
TSMC’s robust growth is supported by its integral role in the AI-driven demand for advanced chip technology, notes NIX Solutions. While competitors face hurdles, TSMC continues to strengthen its market presence. Yet, we’ll keep you updated as more developments unfold in this dynamic industry.