Taiwan Semiconductor Manufacturing Corp (TSMC) (NYSE: TSM) reported on Wednesday that its August sales surged nearly 34%, driven by strong demand for AI chips. The world’s largest contract chipmaker continues to benefit from booming artificial intelligence investment.
Revenue for August jumped 33.8% year-on-year to T$335.77 billion ($11.09 billion). For the January–August period, revenue climbed 37.1% to T$2.43 trillion, compared with the same stretch last year. On a monthly basis, August sales rose 3.9% from July, setting the stage for a strong third quarter.
TSMC’s first-half 2025 results also showed outsized growth, reflecting heavy demand from the AI industry. Much of this demand comes from Wall Street’s so-called AI hyperscalers, the megacap tech firms spending billions to expand their data center infrastructure.
The company remains a key supplier to Nvidia (NASDAQ: NVDA), the leading maker of advanced AI processors. Nvidia recently signaled a strong outlook for continued AI chip demand, further supporting TSMC’s growth prospects.
Beyond AI servers, TSMC said it expects a gradual recovery in consumer electronics demand in the coming months. However, trade tensions between the U.S. and China could pose risks. Washington recently revoked TSMC’s authorization to freely ship advanced chipmaking equipment to its factories in China, potentially limiting business in the region.
