TSMC’s monthly sales rise 30% as AI chips remain in high demand

Taiwan Semiconductor Manufacturing Co. reported a 30% rise in its monthly sales, reflecting continued strength in demand spurred by a global rush to build AI infrastructure.Revenue in May was NT$416.98 billion ($13.2 billion), with combined April and May sales up around 24% from a year ago, according to Bloomberg calculations. Analysts are looking for a 35% increase in second-quarter sales.

Asia’s largest company has become an essential global AI player by making cutting-edge semiconductors for the likes of Nvidia Corp. and Advanced Micro Devices Inc. That’s as Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Microsoft Corp. prepare to set aside $725 billion for AI-related investments this year, significantly more than previously anticipated.
Also Read: Aditya Birla Capital has turned around, it now has to scale upTSMC has been bullish on global AI chip demand. The company’s global chip supply will fall short of demand for years to come, Chief Executive Officer C.C. Wei told shareholders earlier this month, just days after Nvidia boss Jensen Huang said his firm is still supply-constrained.

In April, the Taiwanese chipmaker raised its full-year sales guidance and said its capital spending should trend toward the upper end of an existing forecast range of as much as $56 billion in 2026.

However, TSMC also supplies chips to smartphone and consumer electronics makers, which are grappling with soaring memory chip costs and customer sentiment hurt by rising costs of living.