Taiwan Semiconductor Manufacturing Company booked revenue growth in the opening quarter of 2024, aided by a sales surge in sales in March and strong demand for high-end chips compatible with generative AI applications.

The contract chipmaker’s revenue rose 16.5 per cent year-on-year to TWD592.6 billion ($18.5 billion). Sales growth jumped over the first three months of the year: 7.9 per cent in January, 15.8 per cent in February and 34.3 per cent in March.

Growth in the quarter was its fastest since Q3 2022, when revenue rose 49.7 per cent to TWD613.1 billion.

During an earnings call in January, CEO CC Wei forecast full-year revenue would increase 20 per cent to 25 per cent. The guidance followed flat revenue in Q4 2023. 

The company is a key supplier to Nvidia and Apple.

It earmarked $28 billion to $32 billion for capex in 2024, up from $30.4 billion in 2023.

In its Q1 earnings guidance last week, Samsung Electronics estimated revenue increased 11.3 per cent to KRW71 trillion ($52.7 billion), recording a turnaround in its semiconductor business supported by demand for high-end AI chips.