Taiwan Semiconductor Manufacturing Co. (TSMC) experienced a significant 39.6% year-on-year increase in May sales, driven by strong demand for AI chips. The company's revenue for May reached NT$320.52 billion ($10.71 billion), contributing to a year-to-date revenue of NT$1.51 trillion, a 42.6% increase from the previous year. This growth underscores the continued importance of TSMC in the global semiconductor supply chain, particularly for AI-related applications.
Despite the overall surge, May's revenue saw a slight dip of 8.3% compared to April's record, potentially reflecting a mild cooling in demand and the impact of US restrictions on sales to China affecting major clients like Nvidia. The strength of the Taiwan dollar also presented challenges, given that a significant portion of TSMC's revenue is generated internationally. However, demand for AI chips remains robust, especially from major US tech firms investing heavily in AI infrastructure. TSMC's performance is closely tied to trends in AI investment and potential shifts in US trade policy, which could further influence its growth trajectory.
