By Adam Clark

Taiwan Semiconductor Manufacturing sales are continuing to boom. It's a good sign for companies providing artificial-intelligence infrastructure, although some of the boost is likely being driven by fears of tariffs.

Taiwan Semiconductor, or TSMC, said Thursday its revenue for April came to 349.57 billion New Taiwan dollars, a 48% increase from the previous year and its highest ever monthly sales figure.

The Taiwanese chip manufacturer didn't provide any detail on what drove the surge but it's probably safe to say it has plenty to do with AI hardware. TSMC previously said it expects revenue from AI-related servers and processors to double in 2025.

TSMC is a crucial player in the AI-chip market. It's the main supplier of chips to Nvidia -- the leader of semiconductors used for AI applications. TSMC also makes the core processors inside Apple iPhones, Qualcomm mobile chipsets, and processors made by Advanced Micro Devices.

However, it's likely that the strength is slightly deceptive, as sales could be driven by customers buying chips before the potential imposition of tariffs. TSMC has continued to guide for mid-20% growth in sales this year, well below the 44% increase seen in the first four months of the year.

President Donald Trump has repeatedly suggested he is considering imposing tariffs on chips produced outside the U.S., and it isn't clear if TSMC would receive a waiver on such levies despite pledging a total of $165 billion in American investment.

American depositary receipts of TSMC have dropped 11% this year as chip companies' shares succumbed to tariff turmoil. The ADRs were up 2.3% in Friday's premarket.

Write to Adam Clark at adam.clark@barrons.com

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May 09, 2025 07:12 ET (11:12 GMT)

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