Taiwan Semiconductor Manufacturing Corp, or TMSC, (NYSE:TSM) reported on Wednesday that its August revenue surged almost 34%, driven by soaring demand for AI-related chips, reinforcing its position as the world’s largest contract semiconductor manufacturer.
The company said August sales reached T$335.77 billion ($11.09 billion), a 33.8% increase year-on-year. For the January-August period, revenue climbed 37.1% to T$2.43 trillion, compared with the same period last year.
Month-on-month, August sales rose 3.9%, suggesting TSMC is on track for a strong third-quarter performance. The firm’s first-half 2025 results also reflected significant growth, largely fueled by heightened demand from the AI sector.
Wall Street’s so-called AI hyperscalers—megacap tech companies investing heavily in expanding data centre infrastructure—continued to drive robust chip purchases in recent months.
TSMC is a key supplier to NVIDIA Corporation (NASDAQ:NVDA), whose advanced processors power major AI applications. Nvidia also recently highlighted a strong outlook for AI chip demand. Beyond server-focused chips, TSMC expects consumer electronics demand to rebound in the coming months.
However, potential challenges loom from ongoing U.S.-China trade tensions, which could restrict TSMC’s shipments to Chinese factories. Last week, Washington revoked TSMC’s authorization to freely ship essential chipmaking equipment to mainland China.
Taiwan Semiconductor stock price
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