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TSMC reported that its sales for July rose nearly 45 percent compared to the same month last year. The company brought in about 467.6 billion New Taiwan dollars, or roughly 14.5 billion U.S. dollars, during the month.

This growth is a clear sign that the massive spending on artificial intelligence is not slowing down. Because TSMC is the only factory capable of making the most advanced chips for companies like Nvidia and Google, its monthly sales serve as a pulse check for the entire AI industry. As long as these tech giants keep ordering high-end processors, TSMC remains the primary winner.

Source: CNBC

TSMC and Sony are reportedly planning to spend about 6.3 billion dollars to jointly produce next-generation chips for image sensors. These are the specialized components that allow cameras and smartphones to capture light and create digital photos. While much of the focus on TSMC is currently on AI, this move shows the company is still deepening its roots in the smartphone and camera markets. Partnering with Sony, a leader in camera sensors, helps ensure TSMC's factories stay busy even if the hype around AI eventually cools off.

Source: Reuters

The company began restarting its Japan Advanced Semiconductor Manufacturing plant after a strong earthquake hit the region. Workers had been evacuated as a safety measure, but the gradual return to production suggests there was no major damage to the facility or its sensitive equipment. While natural disasters are a constant risk for chip factories, this quick recovery is a good sign for the company's efforts to build more chips outside of Taiwan. The Japan site is a key part of that expansion plan.

Source: Reuters

Needham raised its price target for the stock to $530, up from $480 previously. This change reflects a more optimistic view of the company's value compared to its current price of about $414. This move follows recent strong results and suggests that analysts see more room for the stock to rise as it continues to benefit from the high demand for advanced chips.

Source: Needham

The company has committed about $200 billion to build factories in the United States since 2025. While this helps the company stay on good terms with the U.S. government, building and running these advanced plants in America is much more expensive than doing so in Taiwan.

These higher costs are starting to eat into profit margins. For a long-term owner, the trade-off is clear: the company is spending heavily to protect its access to the U.S. market, but it will likely earn less profit on every chip made in these new locations.

Source: CNBC