Taiwan Semiconductor's May revenue increased by 39.6% year-on-year, trade uncertainties have triggered a chip hoarding wave
Taiwan Semiconductor's revenue in May reached NT$ 320.5 billion, a year-on-year increase of 39.6%. Although it declined by 8.3% month-on-month, global companies are accelerating chip stockpiling due to geopolitical risks, driving demand for wafer foundry services. Taiwan Semiconductor's CEO reiterated the expectation of a 20% revenue growth in 2025, emphasizing the strong and sustained demand for AI chips. Taiwan's exports to the U.S. hit a record high, indicating robust global semiconductor demand
According to Zhitong Finance APP, as a key chip manufacturer for NVIDIA (NVDA.US) and Apple (AAPL.US), global wafer foundry leader Taiwan Semiconductor (TSM.US) achieved revenue of NT$ 320.5 billion (approximately USD 10.7 billion) in May, a year-on-year increase of 39.6%. In April, Taiwan Semiconductor's revenue grew by 48% year-on-year. Analysts expect Taiwan Semiconductor's sales in the second quarter to increase by 39%. However, despite the year-on-year performance in May being decent, it saw a month-on-month decline of 8.3%.
Taiwan Semiconductor's management attributed the growth to global companies accelerating their chip stockpiling. Against the backdrop of increasing geopolitical risks, technology supply chain companies are preemptively stocking up to cope with potential supply chain disruptions, directly boosting wafer foundry demand. Notably, Taiwan Province's exports to the U.S. reached a historical high in May, confirming the sustained strong demand for semiconductors globally.
At last week's shareholder meeting, Taiwan Semiconductor's CEO C.C. Wei reiterated the expectation of a 20% growth in dollar-denominated revenue by 2025 and emphasized that the demand for artificial intelligence chips remains "in short supply." This statement echoes NVIDIA's optimistic forecast released last month, which predicted that the AI computing market would continue to grow exponentially, effectively alleviating market concerns about a slowdown in the Chinese economy.
In this semiconductor feast triggered by the AI computing revolution, Taiwan Semiconductor's role as a foundational computing infrastructure supplier is becoming increasingly critical. Amid the intertwining of trade protectionism and waves of technological innovation, the global technology industry is building a safety cushion through excessive stockpiling, and Taiwan Semiconductor's wafer production capacity has become the most sought-after "hard currency" in the digital age
