Taiwan Semiconductor Manufacturing Co. (TSM) has reported 30% year-over-year sales growth for its latest quarter.
While strong, the revenue growth was actually below the 33% increase that analysts had projected for the world’s leading manufacturer of microchips and semiconductors.
TSMC, as the company is known, said that it is in the process of shifting capacity to make more of the artificial intelligence (A.I.) chips that are designed by Nvidia (NVDA) and Advanced Micro Devices (AMD).
Taiwan Semiconductor also said that it is being impacted by a global shortage of advanced memory chips that are used in virtually all modern devices, sending prices skyrocketing.
A stronger Taiwanese dollar is also proving to be a drag on TSMC’s sales, say some analysts.
Looking ahead, the company’s plan to exit mature microchip production should free up engineering resources and cleanroom space for the manufacture of new higher-value processors.
TSM stock has risen 104% in the last 12 months to trade at $348.70 U.S. per share.
