TSMC holiday-quarter sales outpace expectations with AI tailwind

Electronics makers and chip suppliers started last year struggling to work through a glut of unsold inventory, after they stockpiled during the pandemic’s semiconductor shortage. That was largely in the rear view mirror by the middle of the year, executives including Chief Executive Officer C. C. Wei said during TSMC’s earnings calls. The company has seen its high-performance computing business boosted by demand for Nvidia and Advanced Micro Devices Inc.’s AI chips.

Apple Inc., arguably TSMC’s most important customer, has faced headwinds with its latest iPhone generation, especially in the world’s biggest mobile market of China. Several analysts have downgraded Apple this year on expectations of soft demand, and this week Jefferies said the iPhone sales slump in China is likely to deepen. The US company has also been hit by an expanded ban by Chinese agencies and state-owned companies ordering staff to keep iPhones and other foreign devices away from work premises.