Taiwan Semiconductor Manufacturing Co. (TSMC), the world's leading contract chipmaker, reported a significant 39.6% year-over-year surge in May revenue, reaching NT$320.52 billion ($10.70 billion).

This robust growth is primarily attributed to sustained high demand for its AI chips. The company, a key supplier to tech giants like Apple and Nvidia, has seen its US-listed shares rise over 2% in premarket trading, extending their 5% gain so far this year.

Despite May's revenue being down 8% from April's figure, the chipmaker's January-to-May revenue climbed nearly 43% compared to the same period last year, reaching NT$1.51 trillion.

This strong performance underpins TSMC's ambitious expansion plans, including a previously announced intent to invest$100 billion in U.S.-based chip-manufacturing facilities.

TSMC CEO C.C. Wei reiterated the company's full-year 2025 revenue projection in April, anticipating an increase of 'close to mid-20s percent in US dollar terms.'

The continued strong demand for AI chips is expected to be a major driver in achieving these financial targets, solidifying TSMC's critical role in the global technology landscape.