Taiwan Semiconductor Manufacturing Co. (TSMC) reported a nearly 40% year-on-year surge in May sales as global demand for artificial intelligence chips continued to drive revenue higher.
The chipmaker posted May sales of T$320.52 billion (US$10.71 billion), a 39.6% increase from the previous year, bringing total revenue for the first five months of 2024 to T$1.51 trillion—up 42.6% from the same period last year.
However, monthly revenue dipped 8.3% from the April record of T$349.56 billion, as a stronger Taiwan dollar and tightening U.S. restrictions on chip exports to China weighed on results. Leading customers, including Nvidia, have been navigating increasing regulatory pressure, which has dampened some demand from China.
Despite these headwinds, demand for AI chips—particularly from U.S. “hyperscalers” investing heavily in AI infrastructure—remains robust outside of China. Recent earnings from major U.S. tech companies indicated continued aggressive spending on AI hardware, suggesting strong near-term prospects for TSMC.
TSMC CEO C.C. Wei cautioned at last week’s shareholder meeting that higher tariffs could slow some orders, but he reaffirmed that AI-driven growth stays solid.
The world’s largest contract chipmaker could further benefit if the U.S. relaxes its export restrictions to China amid ongoing trade talks, in which media reports this week suggested President Donald Trump was considering easing some of these curbs.
