IT Home reported on July 3rd that the semiconductor industry has been facing a crisis of supply and demand reversal since the second quarter of 2022, with supply stuck in overstocked inventories, falling prices, and sluggish demand. However, due to the booming AI industry in recent years, the demand for chips in this field is rapidly increasing.

According to the Electronic Times, companies like NVIDIA, Broadcom, and AMD have all placed orders with TSMC, and with the additional demand for 3nm chips from Apple's iPhone and Mac, TSMC's revenue is expected to significantly rebound in the second half of this year.

Driven by the growth in AI demand, these three companies have been gradually increasing their orders for TSMC's 5/7nm chips since Q2, while also competing for TSMC's CoWoS capacity. This strong momentum is expected to continue until 2024, with overall orders expected to increase by at least 20% compared to 2023.

Industry insiders in the semiconductor sector indicate that the growth of these three major companies is mainly due to the surge in demand for AI. NVIDIA, in particular, is projected to experience a 50% increase in revenue in the latest quarter (May to July), reaching an estimated $11 billion, driven by the surge in AI GPU shipments.

According to insiders in the semiconductor industry, TSMC expects a significant rebound in revenue in the second half of this year, benefiting not only from the launch of the new iPhone but also from strong demand for AI chips from companies like NVIDIA and Broadcom. The momentum of AMD's orders is expected to continue until 2024.

According to DigiTimes, a Taiwanese media outlet, the rapid rise of OpenAI's ChatGPT will create a substantial increase in global market opportunities for generative AI applications in the first half of 2023. Since Q2 2023, NVIDIA, Broadcom, and AMD have all increased their orders for TSMC's 7/5nm process capacity. Their additional orders will continue until 2024, and it is expected that their total order size will increase by at least 20% compared to 2023.

TSMC recently stated that it expects a significant improvement in wafer fab capacity utilization in the second half of this year, particularly for advanced processes below 7nm. The increase in TSMC's foundry utilization rate is mainly driven by the demand for Apple's iPhone 15 series and the growth of orders from NVIDIA, AMD, Broadcom, and Amazon in the second half of the year.

TSMC's President, Wei Jhe-Jia, also mentioned during a shareholders' meeting that the company will surpass the low point of the business cycle in the first half of the year. With the launch of new products by its customers, the performance in the second half of 2023 is expected to be better than the first half, and the full-year revenue will decrease by a median percentage, outperforming the semiconductor and wafer manufacturing industry.