TSMC Grows 30% to NT$718.9B as Export Curbs, Middle East Risks Weigh on Nvidia
TSMC posted 30% year-over-year sales growth to NT$718.9B ($22.6B) in January-February, with February revenue rising 22% versus January’s 36.8% due to Lunar New Year timing. U.S. export policy on advanced AI chips and supply chain risks from Middle East tensions threaten Nvidia’s chip supply and could slow AI infrastructure deployment.
1. TSMC Revenue Growth
TSMC reported a 30% increase in sales to NT$718.9 billion (US$22.6 billion) for January and February, driven by robust orders for advanced AI chips. The company saw January growth of 36.8% compared with a 22% rise in February, reflecting the Lunar New Year’s calendar impact on year-on-year comparisons.
2. U.S. Export Policy Changes
The U.S. government is evaluating new controls on advanced AI semiconductors, which could mandate export licenses, security guarantees, and investments in domestic AI data centers for large shipments. These potential restrictions risk limiting Nvidia’s access to cutting-edge chips from TSMC and could increase costs for AI hardware providers.
3. Middle East Supply Chain Risks
Heightened tensions in the Middle East have raised concerns about disruptions to critical materials such as helium, essential for semiconductor manufacturing. Any interruption in the supply chain could impede chip fabrication at TSMC and delay delivery of AI accelerators crucial to Nvidia’s infrastructure deployments.