TSMC's May revenue rose 30.1% from a year earlier to 416.975 billion Taiwan dollars (about 20 trillion won). The gain reflects continued strong demand for advanced semiconductors driven by expanded AI infrastructure investment.
According to Bloomberg on the 10th, TSMC estimated combined revenue growth for April to May at about 24% and projected full second-quarter growth would reach 35%. With Nvidia and AMD among its major customers, TSMC has emerged as a key beneficiary as the annual capital spending by the four U.S. hyperscalers (Alphabet, Amazon, Meta, MS) is expected to reach $725 billion (about 1,105 trillion won) this year.
CEO Wei Zhejia said at this month's shareholders meeting that the spread of AI model adoption across consumer, corporations, and sovereign AI is supporting demand for advanced semiconductors, adding that supply shortages would persist for years. In April, TSMC raised its annual revenue guidance and set this year's capital expenditure (CAPEX) at up to $56 billion (about 85 trillion won).
CFO Wendell Huang emphasized in a BBC interview that the expansion of overseas production bases is a decision driven by customer demand, not geopolitical pressure, described AI as a "mega trend," and assessed that hyperscalers have ample capacity to invest.
However, the company did not rule out the possibility of price hikes, citing expense increases due to inflation. Higher wafer prices could have a ripple effect on the prices of AI infrastructure and consumer electronics.