Taiwan Semiconductor Manufacturing Company (TSM) reported its first-quarter earnings on Friday and said sales during the period rose 35% on continued strength from ongoing global AI development.
The company’s revenue between January and March exceeded 1.13 trillion new Taiwan dollars ($35.7 billion), compared with estimates for the period. March revenue increased 31% versus February and 45% versus March 2025.
The company will hold its first quarter earnings call on April 16.
The announcement is just the latest sign that global demand for AI chips shows no signs of slowing down anytime soon.
On Wednesday, market research firm Gartner said global spending on semiconductors, including GPUs, memory and storage chips, will reach $1.3 trillion in 2026, marking the largest growth in two decades.
This equates to a 64% year-over-year revenue increase for the chip industry.
TSMC is the world’s largest contract semiconductor manufacturer and serves as a barometer for the broader AI industry.
It makes processors for companies like Nvidia (NVDA) and AMD (AMD), as well as Broadcom (AVGO), which helps design chips for Google (GOOG, GOOGL) and is working on chip design for OpenAI (OPAI.PVT).
AI companies continue to grapple with capacity constraints, due to overwhelming demand for computing capabilities, forcing them to source chips from a variety of sources.
This is leading many of the world’s tech giants to not only source their own Nvidia and AMD chips, but also rely on contracted cloud companies like CoreWeave (CRWV), which rent processor capacity to customers.
On Friday, Anthropic (ANTH.PVT) announced it signed a multi-year deal with CoreWeave, sending shares of the computing provider soaring 13%. CoreWeave is also working with Meta (META) to boost its AI services through December 2032.
And earlier this week, Anthropic said it is working with Google and Broadcom to gain access to 3.5 gigawatts of Google’s tensor processing units (TPUs).
Broadcom is also developing a custom chip for rival Anthropic OpenAI.
Projects like those and others will likely help continue fueling TSMC’s revenue growth in the coming months.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.
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