TSMC’s Monthly Sales Rise In Latest Sign Of Sector Recovery

(Bloomberg) -- Taiwan Semiconductor Manufacturing Co.’s January sales rose after strong demand for AI chips helped offset continued weakness in consumer electronics products.

Revenue at the world’s biggest chip contract manufacturer and supplier to Apple Inc. and Nvidia Corp. rose 7.9% last month to NT$215.79 billion ($6.9 billion), according to a statement Wednesday.

The revenue growth is the latest sign that a long-awaited sector rebound is near. As demand grows, TSMC is poised to outpace its peers thanks to its lead in the most advanced technology and AI chips, according to Bloomberg Intelligence.

Last month, TSMC said that it’s projecting revenue growth of at least 8% in the March quarter in the range of $18 billion to $18.8 billion.

Persisting weakness continues to weigh on the tech sector, however. Apple warned that it’s facing a tough quarter compared with the year-earlier period, which got a boost from pent-up iPhone demand, while iPhone assembler Hon Hai Precision Industry Co. reported a 21% drop in January sales.

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