TSMC May Sales Surge 40% on Strong AI Chip Demand

Taiwan Semiconductor Manufacturing Co. (TW:2330) (NYSE:TSM), the world’s largest contract chipmaker, reported a 39.6% year-over-year increase in May sales, driven by booming demand for artificial intelligence (AI) chips. The company posted revenue of T$320.52 billion ($10.71 billion) for the month, pushing its year-to-date revenue to T$1.51 trillion—up 42.6% from the same period in 2024.

Despite the surge, May revenue fell 8.3% from April’s record T$349.56 billion, reflecting a slight cooling in demand. The decline comes as key clients like Nvidia (NASDAQ:NVDA) face heightened U.S. export restrictions to China, creating headwinds for chipmakers. Additionally, the stronger Taiwan dollar in May negatively impacted TSMC’s top-line, as much of its sales are generated in foreign currencies.

Still, global demand for AI chips remains robust, particularly from U.S. tech giants, often referred to as “AI hyperscalers,” who continue to invest heavily in AI infrastructure. This trend supports ongoing growth for TSMC, a major supplier of advanced chips used in data centers and AI applications.

At the recent shareholder meeting, TSMC CEO C.C. Wei acknowledged potential risks from tariffs and geopolitical tensions but reaffirmed the company’s optimistic outlook, fueled by sustained AI momentum. He also noted that U.S.-China trade talks could lead to a rollback of some export restrictions, which would be a positive development for the chip industry.

With AI chip demand showing no signs of slowing and policy shifts potentially easing global trade friction, TSMC remains well-positioned to capitalize on long-term semiconductor growth. Investors are closely watching for updates on U.S. policy and AI investment trends, both of which could shape TSMC’s performance in the second half of 2025.