Taiwan Semiconductor Manufacturing Co. (TSMC) posted a substantial increase in its monthly revenue, signaling persistent demand for advanced semiconductors driven by the global expansion of artificial intelligence infrastructure.
The company reported that May sales reached NT$416.98 billion, representing a year-on-year rise of 30%. Over the combined months of April and May, revenue climbed approximately 24% compared to the same period last year, based on Bloomberg calculations.
Market analysts anticipate TSMC’s second-quarter revenue will jump 35%, supported by strong orders for chips that power data centers and AI-related applications. TSMC is a key supplier for major technology companies such as Nvidia and Advanced Micro Devices, which are at the forefront of AI development.
Major cloud service providers, including Alphabet, Amazon.com, Meta Platforms, and Microsoft, are collectively planning to allocate $725 billion this year for investments in artificial intelligence—a figure revised upward from previous projections.
Earlier this month, CEO CC Wei indicated to shareholders that supply will not keep pace with demand for several years, reflecting an ongoing tightness in the market. This view echoed recent remarks by Nvidia’s Jensen Huang, who noted that supply constraints remain an issue for his company.
TSMC revised its 2026 full-year sales outlook in April, guiding investors that revenues and capital expenditure could reach the upper range of an earlier forecast, potentially approaching $56 billion. While AI is the primary growth engine, the company also continues to manufacture chips for smartphones and consumer devices.
Despite these positive sales figures, TSMC shares faced downward pressure in the latest trading session. The stock closed Wednesday with a 2% decline, reflecting investor caution as potential new export restrictions on AI chips loom.
Notably, a Bloomberg report on Tuesday indicated that Taiwan may tighten controls on advanced chip exports to China, aligning its regulatory stance more closely with U.S. measures introduced in 2022.
