TAIPEI (Taiwan News) — Taiwanese chip and technology device suppliers had strong June sales due to increasing demand for artificial intelligence (AI) servers and recovery in the computer sector, Nikkei Asia reported on Friday (July 12). 

Taiwan’s 19 largest tech companies saw a combined revenue of NT$1.24 trillion (US$38.05 billion) in June, up 13.5% year-over-year, per Nikkei Asia. This represented the fourth consecutive month of increased revenue. 

Asus saw its sales grow 21.5% last month. It had new computers with upgraded AI performance hit the market, while sales of AI servers were robust, the report noted. 

Contract manufacturer Compal Electronics, which makes computers, saw June sales increase by 1.3%, its first year-over-year rise in five months, according to Nikkei Asia. 

Computer and server maker Quanta Computer meanwhile saw June sales rise 23.4%. Sales for its AI servers grew as a shortage in GPUs, a vital component, has gradually eased. 

As for contract electronics maker Foxconn, June sales grew 16.1%, as server and computer sales rose, while smartphone sales dropped. Fellow iPhone manufacturer Pegatron last month saw sales decline 14.2%, the report said. 

Within the chip sector, Taiwan Semiconductor Manufacturing Co. (TSMC) said June revenue was around NT$207.87 billion, representing a 32.9% year-over-year increase. TSMC said robust demand in the HPC market and strong demand for its 3nm and 5nm chips will drive Q2 revenue to around US$19.6 billion to US$20.4 billion. 

Meanwhile, United Microelectronics Corporation (UMC) reported a 7.9% sales drop in June due to a slower recovery for mature processes. Fabless chipmaker MediaTek reported a June sales growth of 12.8%.