Taiwan Semiconductor Manufacturing Co (TSMC), the largest chip maker in the world, is expected to report a 30% rise in second-quarter profit on Thursday (18 July).
The huge surge in TSMC’s profit is being fuelled by AI demand from its customers like Apple and Sony, as Big Tech companies increasingly look to buff their AI capabilities.
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TSMC will reportedly announce a net profit of $7.25bn for the quarter ending 30 June, according to LSEG.
Semiconductors created by TSMC are vital in the development of AI technology.
AI requires large amounts of computing power in order to run, including a long list of specialised hardware, such as sensors and memory chips.
As AI matures and becomes more advanced, its computing needs will further expand, requiring more advanced chip technology.
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By GlobalDataThe surge follows a slowdown within the semiconductor industry from 2022 to 2023, with a 9.4% decrease in global revenues, according to World Semiconductor Trade Statistics.
The slowdown was due to the cyclical nature of the industry, combined with supply chain disruptions, component shortages, the global economic downturn and geopolitical turmoil, according to research and analysis company GlobalData’s Tech, Media, & Telecom Predictions 2024 report.
The research company previously predicted the semiconductor industry would return to growth in 2024, fuelled by the rollout of new products and restored supply chain disruptions.
The global AI market is expected to grow to a value of $909bn by 2030, achieving a compound annual growth rate (CAGR) of 35% from 2022, according to GlobalData.
GlobalData expects GenAI to be the fastest growing segment of AI technology, posing a disruption to every industry.
GenAI revenues are expected to achieve a CAGR of 80% between 2022 and 2027, amassing a global revenue of $33bn.
The value of global AI deals peaked in 2023 with a total value of $196.4bn, according to GlobalData's deal database.
In 2024 so far, the value of AI deals totalled $102.9bn. The deals are expected to surge above 2023 before the end of the year.
