Now TSMC reported better-than-expected quarterly revenue, providing another signal that electronics demand is holding up better than feared.

The world’s largest contract chipmaker booked $17.9 billion of revenue for the second quarter, according to Bloomberg’s calculations.

The news may allay investors’ worst fears about the impact of weakening demand and soaring costs on the $550 billion semiconductor industry. Samsung also reported a better-than-anticipated 21 per cent jump in revenue, which suggests that most of the analysts are just guess their numbers.

While concerns linger about the longer-term impact of a potential global recession, investors seized on Samsung’s top-line expansion as a sign that chip stocks may have been oversold.

TSMC’s second-quarter sales is slightly lower than the most recent market expectations. But the company’s third quarter revenue may outperform consensus, aided by its price hikes  and new product launches.

Shares of TSMC closed up 2.1 per cent ahead of the revenue announcement but were still down 24 per cent this year after a broader tech selloff on recession worries.