TSMC Revenue Surges 39.6% Year-Over-Year, Driven by Chip Stockpiling Trend

Taiwan Semiconductor Manufacturing Company (TSMC), a pivotal chip manufacturer for tech giants like
and , reported a significant 39.6% year-over-year increase in revenue for May, reaching NT$320.5 billion (approximately $10.7 billion). This growth follows a substantial 48% year-over-year increase in April, with analysts projecting a 39% growth in sales for the second quarter. However, despite the robust year-over-year performance, May's revenue saw an 8.3% decline compared to April.TSMC's management attributed this growth to a global trend of enterprises accelerating their chip stockpiling. In the face of escalating geopolitical risks, technology supply chain companies are preemptively stocking up to mitigate potential disruptions, thereby boosting demand for semiconductor manufacturing services. This trend is further validated by the record high in exports from the region to the United States in May, underscoring the sustained robust demand for semiconductors worldwide.
During the recent shareholder meeting, TSMC's CEO, C.C. Wei, reaffirmed the company's expectation of a 20% increase in dollar-denominated revenue by 2025. He emphasized that the demand for AI chips remains in a "supply shortage" state. This statement aligns with NVIDIA's optimistic forecast from the previous month, which predicted exponential growth in the AI computing market. This has effectively alleviated market concerns about a slowing economy.
In this semiconductor boom driven by the AI computing revolution, TSMC's role as a foundational supplier of computing power has become increasingly crucial. Amidst the interplay of trade protectionism and technological innovation, the global tech industry is building a safety net through overstocking. TSMC's wafer production capacity has become one of the most sought-after "hard currencies" in the digital age, highlighting its strategic importance in the current technological landscape.

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