Taiwan Semiconductor's August sales surged 33% year-on-year, with iPhone 16 orders expected to further boost performance

Benefiting from strong demand for AI and smartphones, Taiwan Semiconductor's sales data in August showed steady growth.

On September 10th, Taiwan Semiconductor announced its latest monthly performance. The sales revenue in August was NT$250.866 billion, a year-on-year increase of 33% but a decrease of 2.4% from the previous month. The year-to-date sales revenue reached NT$1.773974 trillion, a year-on-year increase of 30.8%.

Taiwan Semiconductor's monthly sales revenue has remained strong throughout this year. May was the best-performing month with a year-on-year increase of 59.6%, followed by July with a 44.7% increase. Although the year-on-year growth rate in August's latest sales data declined compared to July, it still remained above 30%.

Today, Taiwan Semiconductor's stock in Taiwan rose slightly by 0.56%. In the U.S. stock market, the company has gained over 60% year-to-date.

Overnight, Apple officially released the iPhone 16. According to Wccftech, Apple will use the A18 and A18 Pro chips in the iPhone 16 series, and the increase in orders for these chips will drive a significant increase in Taiwan Semiconductor's 3nm process revenue. Previous forecasts indicated that Taiwan Semiconductor's 3nm process revenue would grow by 26-29% in 2024. With major customers like Apple increasing orders, this forecast has been revised upwards to 31-34%.

Furthermore, the recent news that Intel will fully outsource processes below 3nm to Taiwan Semiconductor has attracted attention. As Taiwan Semiconductor continues to lead in advanced processes, it is dominating the foundry market. At the end of last month, media reports suggested that Intel is considering various options, including splitting its chip design and manufacturing business and shutting down some factory projects. Analysts at Morgan Stanley believe that this move is favorable for Taiwan Semiconductor:

If Intel decides to further reduce capital expenditures or halt new wafer fabs, it will directly impact its external foundry capacity. Considering the current global shortage of advanced processes, such actions may further tilt the market towards Taiwan Semiconductor, especially given Taiwan Semiconductor's expanding business footprint. TSMC Chairman Mark Liu recently stated that benefiting from strong demand for AI, smartphones, and TSMC's advanced 3 and 5 nanometer technologies, this year is expected to be a year of strong growth, with projected full-year USD revenue growth of 24% to 26%