Taiwan Semiconductor May Sales Jump 30% to NT$416.98B, Faces AI Chip Export Curbs
NVDA•Taiwan Semiconductor Manufacturing Co. saw May revenue jump 30% year-over-year to NT$416.98 billion ($13.2 billion), lifting combined April-May sales by around 24% from a year earlier. Taiwan is weighing stricter AI chip export controls that could limit Nvidia server shipments to China and pressure semiconductor supply chains.
1. Strong May Revenue Growth
In May, TSMC generated NT$416.98 billion in revenue, a 30% increase year-over-year, and combined April-May sales rose about 24% from last year. Analysts have boosted second-quarter sales growth forecasts to around 35%, following a full-year sales guidance upgrade in April.
2. Proposed AI Chip Export Controls
Taiwan is considering measures to tighten export rules on advanced AI chips bound for China to curb unauthorized rerouting of hardware, including Nvidia servers. These controls could impose additional approval requirements and constrain shipments to one of the largest markets for AI processors.
3. Sustained AI Demand and Capex Plans
Surging demand from cloud providers and data centers continues to underpin TSMC’s revenue momentum, prompting capital expenditure projections toward the upper end of a $56 billion ceiling for 2026. This investment aims to expand capacity for next-generation AI chip orders.
4. Nvidia’s Taiwan Expansion
Nvidia plans to establish a Taiwan headquarters and allocate up to $150 billion annually for regional investment. This move is expected to deepen collaboration with TSMC and reinforce Taiwan’s role in the global AI semiconductor supply chain.
