Taiwan Semiconductor Manufacturing Co. reported May revenue of $13.2 billion, up 30% from a year ago. The results came as Taiwan is reportedly considering stricter export controls on AI chip sales to China to align with U.S. measures, according to Bloomberg sources citing its reporting. TSMC supplies cutting-edge semiconductors to companies including Nvidia and Advanced Micro Devices, with major cloud providers allocating $725 billion for AI-related investments this year.
TSMC Reports 30% Revenue Growth in May
TSMC issued its monthly update in the early hours of Wednesday. Revenue in May increased 30% to 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 expect sales growth of 35% in the second quarter, which ends in June, according to estimates from Koyfin.
Taiwan Considers Stricter AI Chip Export Controls
Bloomberg reported, citing its sources, that Taiwan is considering stricter export controls on AI chip sales to China to further align with U.S. measures. The proposed rules would strengthen authorities' ability to act against the illegal rerouting of advanced AI hardware, including Nvidia's servers, to China, where such sales have required U.S. government approval since 2022.
AI Chip Demand Drives Performance
The latest performance shows steady demand for advanced chips, which power data centers and other systems that power AI applications, smartphones and automobiles. TSMC makes cutting-edge semiconductors for the likes of Nvidia and Advanced Micro Devices. The biggest buyers of those chips — including cloud companies Alphabet, Amazon, and Microsoft — have set aside $725 billion for AI-related investments this year.
TSMC Raised Full-Year Guidance in April
In April, TSMC 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. Last month, Nvidia CEO Jensen Huang announced that the U.S. chip designer would set up a headquarters in Taiwan and invest up to $150 billion annually in the region. The plan is expected to bring additional capital and resources into the region, potentially boosting business for TSMC and other contract chipmakers that support the company's AI supply chain.
Frequently Asked Questions
What revenue did TSMC report for May?
TSMC reported May revenue of NT$416.98 billion ($13.2 billion), representing a 30% increase from a year ago.
Why is Taiwan considering stricter AI chip export controls?
Taiwan is reportedly considering stricter export controls on AI chip sales to China to further align with U.S. measures, according to Bloomberg sources. The proposed rules would strengthen authorities' ability to act against the illegal rerouting of advanced AI hardware to China.
What capital spending guidance did TSMC announce in April?
In April, TSMC 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.
