Taiwan Semiconductor Manufacturing Co. (TSMC) reported better

 

Taiwan Semiconductor Manufacturing Co. (TSMC) reported better-than-expected Q2 revenue due to higher demand for chips powering AI applications, according to Bloomberg.  TSMC is the main contract manufacturer for Nvidia's AI accelerator chips, which are used to train large AI models. While TSMC's revenue fell by 10% compared to the previous year, it still surpassed analysts' estimates. Goldman Sachs analysts Bruce Lu and Evelyn Yu believe TSMC is a "key AI enabler" due to its leadership in advanced technology. According to DigiTimes, China-based AI chip design houses, such as T-Head and Sanechips, are expanding their chip orders for TSMC's 7nm process. In October, the U.S. government restricted some AI GPU exports to China. There have been rumors of further measures, possibly including an export ban on high-end AI chips like Nvidia's A800 GPUs tailored for China.