TSMC’s August revenue reached a new high, breaking through the 500 billion yuan mark in a single month

TSMC’s August revenue reaches new high (Reuters)

[Reporter Lin Yiru/Special Report] AI demand continues to be strong, and the revenue of the wafer foundry group has simultaneously delivered outstanding results in August. TSMC (2330), UMC (2303), and Power Semiconductor Manufacturing Co. (6770) have hit record highs respectively in the past 47 months and nearly 47 months. A 50-month high, with TSMC's single-month revenue exceeding 500 billion yuan for the first time. Looking ahead to the market outlook, as the demand for advanced processes and advanced packaging continues to be strong, coupled with the tight supply of mature processes and the fermentation of price increases, the business potential of the wafer foundry group will continue to heat up.

TSMC's revenue in August continued to hit a new high, reaching 514.806 billion yuan, a monthly increase of 10% and an annual increase of 53.3%. Benefiting from the continued strong demand for AI, shipments of advanced processes such as 3nm are heating up. Coupled with high-volume shipments of 2nm, advanced packaging production capacity continues to be in short supply. TSMC's single-month revenue has hit a new high for four consecutive months. Judging from the cumulative revenue in July and August reaching 982.3 billion yuan, TSMC’s third quarter revenue has the opportunity to reach the high standard of financial forecasts.

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TSMC continues to advance the progress of advanced processes. The construction progress of four new 1.4nm factories in Zhongke is significantly ahead of schedule by about half a year. The first factory (P1) is expected to complete trial production in April next year and officially enter mass production in the second half of 2027. Compared with the originally planned mass production schedule of 2028, the progress is significantly ahead of schedule.

UMC's revenue in August reached 25.045 billion yuan, a monthly increase of 5% and an annual increase of 30.7%. As the benefits of price increases have fermented, revenue has risen for six consecutive months. UMC has previously issued price increase notices to customers. In response to rising costs, UMC will discuss more comprehensive price adjustments with customers in 2027. In addition to UMC, Power Semiconductor's August revenue also reflected price increases, with consolidated revenue reaching 7.009 billion yuan, a monthly increase of 5.1% and an annual increase of 76.19%, reaching a 50-month high.

As the demand for AI servers, general-purpose servers and edge AI peripherals heats up, coupled with the limited supply of mature process production capacity, a serious capacity crowding effect occurs, the market generally expects that the supply of mature processes will continue to be tight next year, and foundry prices are expected to continue to rise, which will benefit wafer foundries such as UMC, World Advanced (5347) and Power Semiconductor Manufacturing Co., Ltd. to further increase their gross profit margins.

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