The Taiwan Semiconductor Manufacturing Corp. (TSMC) recorded an impressive revenue increase of 39.6% in May 2025 compared to the previous year, driven by increased demand for advanced semiconductors, especially AI chips. The revenue totaled $10.7 billion.
Main Drivers of Demand
AI Chips and Stockpiling
The demand for AI chips is a key driver of revenue growth. Furthermore, companies have started stockpiling chips due to trade uncertainties and impending tariffs, a practice referred to as “stockpiling”.
US Tariffs
Concerns about the impact of US tariffs on international trade have also contributed to the increased demand for TSMC chips. This has further boosted the company’s revenues.
Significance for Investors in the German-speaking Area
TSMC plays a central role in the global chip market and is an important partner for large technology firms such as Apple, NVIDIA, AMD, and Qualcomm. These companies are major customers of TSMC and account for about 40% of the revenue. Therefore, TSMC’s performance has direct implications for tech stocks and is of significant interest to investors in the German-speaking area.
Comparison to Other Months
In April 2025, TSMC had already seen a strong revenue growth of 48.1% compared to the previous year, which was also attributed to stockpiling and demand for advanced semiconductors. However, in May, revenues decreased by 8.3% compared to April to 320.516 billion NT dollars. This decline could be indicative of seasonal fluctuations or a temporary softening of demand.
Overall, the revenue increase in May 2025 shows that TSMC continues to benefit from the demand for advanced semiconductors and plays a central role in the global chip market.