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TSMC May sales rise 30% as countries rush to secure AI chips

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(Bloomberg) — Taiwan Semiconductor Manufacturing Co.’s May sales rose 30% to NT$229.6 billion ($7.1 billion), helped by growing demand for artificial intelligence and the recovery of some consumer electronics products .

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The world’s largest contract chipmaker has benefited from a global race to develop AI services, producing semiconductors for Nvidia Corp. which are then sold to companies like Microsoft Corp. Global smartphone sales also emerged from a long-lasting slump in the first three months of the year, fueling expectations of strong orders for mobile chips.

Hsinchu-based TSMC has managed to maintain high margins as the world rushes to build data centers. It is the exclusive manufacturer of Nvidia’s most advanced AI accelerators and also makes semiconductors for Apple Inc. and Advanced Micro Devices Inc., Nvidia’s closest competitor.

This week, TSMC Chairman and CEO CC Wei reiterated expectations that the development of AI will lead to an industry-wide recovery this year.

—With assistance from Alfred Liu and Twinnie Siu.

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