TSMC Sales Jump 30 Percent as AI Chip Demand Stays Strong
TSMC posted a 30 percent revenue increase in May to NT$416.98 billion (roughly 11 billion euros), sustained by demand for AI chips from customers including Nvidia and AMD. The combined April and May sales grew 24 percent year-on-year.
Analysts expect second-quarter sales to rise 35 percent. TSMC already delivered its fourth consecutive record quarter in Q1 2026, with first-quarter revenue up 35 percent year-on-year.
Supply Cannot Keep Pace
TSMC CEO CC Wei told shareholders this month that global chip supply will fall short of demand for years. Nvidia CEO Jensen Huang echoed the constraint days earlier, saying his company remains supply-limited.
TSMC is deliberately avoiding sharp price increases despite demand pressure, choosing instead to build long-term customer relationships and predictable growth. The company raised its full-year sales guidance in April to over 30 percent growth and signaled capital spending should trend toward the upper end of a US$56 billion forecast for 2026.
Intel, long sidelined as a foundry for advanced chips, is emerging as a potential second source for companies like Nvidia and Apple. Broadcom flagged earlier this year that TSMC's production lines face visible pressure, with delays expected to affect supply chains in 2026.
Long-Term Roadmap Takes Shape
TSMC unveiled new manufacturing nodes in April, including the A13 node targeting AI chips in 2029. The production roadmap provides stability as AI spending accelerates.
Alphabet, Amazon, Meta, and Microsoft are collectively preparing to set aside $725 billion for AI-related investments this year, significantly more than previously anticipated.
Diversification Beyond AI
TSMC's exposure extends beyond AI. The chipmaker serves smartphone and consumer electronics manufacturers facing soaring memory chip costs and consumers affected by rising living expenses. These markets could absorb demand if an AI slowdown occurs, though no such threat is visible now.
For sales professionals tracking supply chain dynamics and customer demand, TSMC's trajectory signals sustained pressure on chip availability and the strategic importance of securing foundry capacity early. Learn more about AI for Sales to understand how AI demand is reshaping customer relationships and revenue strategies.
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