Investing.com– TSMC (NYSE:TSM) clocked a sharp increase in its sales for December as the world’s biggest contract chipmaker continued to see robust demand from the fast-growing artificial intelligence industry.
Sales rose 57.8% year-on-year to T$278.16 billion ($8.44 billion), TSMC said in a statement on Friday. The pace of growth also picked up sharply from the prior month,.
The figure brought TSMC’s fourth-quarter revenue to T$868.46 billion, up substantially from the T$625.53 seen in the prior year.
The strong sales set a positive tone for chip demand going into 2025, as TSMC continued to benefit from heightened capital expenditure on data centers and other AI-related infrastructure. This trend has largely offset weakness in chip demand from consumer electronics, which TSMC warned is unlikely to improve in the near-term.
The chipmaker is a key part of the global chip supply chain, and manufactures chips for several major technology companies. AI darling NVIDIA Corporation (NASDAQ:NVDA) is TSMC’s biggest customer, and has been a key source of AI-fueled demand over the past two years.
TSMC will report its fourth-quarter earnings next week.
