Taiwan Semiconductor Manufacturing Company Limited (TSMC), the world’s leading semiconductor manufacturer, announced on Thursday that its net income for the first quarter of 2024 surged by 38% year-over-year to NT$225 billion ($7.1 billion). This increase surpassed expectations, fueled by escalating demand for artificial intelligence (AI) applications.

The company’s net revenue reached NT$592.64 billion ($18.87 billion), exceeding analysts’ projections of NT$582.94 billion. The gross margin also saw significant growth, advancing to 53%, which translates to NT$314.505 billion ($10 billion). Additionally, TSMC reported a diluted earnings per share of NT$8.70 ($0.28).

In its financial report, TSMC highlighted the performance of its cutting-edge technology segments. Shipments of 3-nanometer (nm) products made up 9% of total revenue. Meanwhile, the 5nm and 7nm technologies contributed 37% and 19%, respectively. Collectively, advanced technologies, defined as 7nm and finer, accounted for 65% of the total wafer revenue.

As a critical supplier to major tech companies like Apple and Nvidia, TSMC’s performance is closely watched for indications of trends in the broader technology sector, including AI and high-performance computing markets.

The strong quarter underscores TSMC’s strategic positioning within the semiconductor industry, capitalizing on the burgeoning demand for more sophisticated computing power. As digital and technological transformations accelerate globally, TSMC’s advanced manufacturing capabilities are likely to keep them at the forefront of the industry.

Looking ahead, TSMC remains optimistic about its growth trajectory, underpinned by ongoing innovations and the expansion of its manufacturing capacities to meet the increasing demand for high-performance semiconductor solutions.