June 16 — Taiwan Semiconductor Manufacturing Co. (TSM, Financial) reported a 39.6% year-on-year increase in revenue for May, signaling limited disruption from recent trade tensions.
The chipmaker posted NT$320 billion in monthly revenue, bringing its January-to-May growth to 42.6% from the prior-year period. The gains came amid continued AI infrastructure investment by major tech firms and stable capital spending, despite geopolitical noise around tariffs.
TSMC's (TSM, Financial) foundry market share also ticked up to 67.6% in Q1 2025 from 67.1% in the previous quarter, according to TrendForce data. Samsung, its nearest rival, saw its share decline to 7.7% from 8.1% during the same period. The shift may bolster TSM's pricing power as demand for advanced chips remains robust.
The company is advancing its 2nm process, which recently achieved yields above 90%. Meanwhile, Intel's (INTC, Financial) ongoing struggles in its foundry unit could reinforce TSM's lead in cutting-edge manufacturing.
Shares of TSM have rebounded strongly, up nearly 50% from early April lows,after falling earlier this year on trade concerns. The stock now trades around $211.
Looking ahead, TSM is forecast to grow revenue 41.5% in fiscal 2025. Analysts expect additional gains of 16.7% in 2026 and 15.8% in 2027 as the company benefits from high-margin AI chip demand and global supply chain shifts.
