Taiwan Semiconductor Manufacturing Company (TSMC) reported a 30% rise in its monthly sales for May 2026, driven by sustained demand linked to AI infrastructure development [1, 2]. The company’s revenue for the month reached NT$416.98 billion (US$13.2 billion or RM53.6 billion) [1, 2].
Combined sales for April and May 2026 were up approximately 24% compared to the same period last year, highlighting robust growth fueled by artificial intelligence applications [1, 2]. Analysts expect TSMC’s second-quarter 2026 sales to increase by 35%, underscoring the momentum in chip demand [1, 2].
TSMC supplies critical AI chips to major clients such as Nvidia and AMD [1, 2]. Nvidia Chief Executive Officer Jensen Huang confirmed his company remains constrained by chip supply despite high demand [1, 2]. TSMC CEO CC Wei stated in early June that "global chip supply will fall short of demand for years to come," pointing to a sustained market imbalance [1, 2].
Major technology firms including Alphabet, Amazon, Meta, and Microsoft have announced plans to invest US$725 billion in AI-related projects during 2026, exceeding earlier forecasts and contributing to the surge in chip demand [1, 2].
In April 2026, TSMC raised its full-year sales guidance and indicated that capital spending for the year would likely trend towards the upper limit of its forecasted US$56 billion range [1, 2]. Besides AI chips, the company produces semiconductors for smartphones and consumer electronics, sectors currently challenged by rising memory chip costs and weaker customer sentiment amid inflationary pressures [1, 2].
TSMC’s strong May results reflect the ongoing buildout of AI infrastructure worldwide and the tight supply conditions in the semiconductor market. The company is expected to release its full second-quarter financial results in the coming weeks.
