TSMC Shifts Focus to High-End AI Chips, Boosting Revenue

Majority of Revenue from AI Chips: TSMC’s high-performance computing (HPC) segment now accounts for 52% of its wafer revenue.
Decline in Smartphone Dependency: Revenue from smartphones has dropped to a third of TSMC’s business, previously its main revenue source.
Increased AI Chip Production: TSMC produces AI-training chips for Nvidia, AMD, and AI-infused processors for Qualcomm.

Revenue Surge from AI Chips: The shift towards AI-driven HPC chips has significantly boosted TSMC’s revenue and operating margins.
Market Leadership in AI: TSMC’s transition highlights its role as a key provider for AI accelerators, reinforcing its market position.
Strategic Shift in Production: Moving away from reliance on smartphone chips to AI chips aligns TSMC with the growing demand in AI technologies.
Future Growth Prospects: With AI demand projected to increase, TSMC’s focus on AI chips positions it for continued growth in the coming years.
Industry-wide AI Integration: TSMC’s customers are increasingly integrating AI into their devices, reflecting a broader industry trend towards AI adoption.

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