Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, achieved a record monthly revenue of 514.8 billion New Taiwan dollars ($16.35 billion) in August, marking a year-over-year increase of 53.3% and a 10.1% rise from July. This marks the fourth consecutive month of revenue growth for the company, fueled largely by robust demand for semiconductor chips used in artificial intelligence (AI) applications. Despite the strong results, TSMC shares dipped slightly by 0.61% ahead of the revenue announcement.

In its recent quarterly earnings call in July, TSMC highlighted that AI-related chip demand continues to be exceptionally strong, contributing to a 77% jump in second-quarter profits compared to the previous year. The company also provided a positive outlook for the third quarter, projecting revenue in the range of $44.6 billion to $45.8 billion. TSMC maintains a dominant position in the global semiconductor foundry market, commanding a 72.5% share in the second quarter, according to data from TrendForce.

The ongoing surge in demand for AI server processors has kept TSMC’s advanced 5-, 4-, and 3-nanometer manufacturing capacities fully booked during the recent quarter. By comparison, Samsung Foundry and China’s SMIC hold significantly smaller shares at 5.9% and 5.4%, respectively. The combined revenue of the top ten global foundries reached nearly $53.49 billion in the second quarter, driven by supply constraints for cutting-edge semiconductor processes crucial to AI and high-performance computing.

Separately, TSMC announced a collaboration with Dutch chip equipment leader ASML to accelerate the adoption of next-generation chipmaking technologies. The company plans to use ASML’s High Numerical Aperture (High NA) extreme ultraviolet (EUV) lithography machines for large-scale production of advanced semiconductor nodes starting in 2030. This initiative reflects the growing complexity of transistor architectures required by AI applications, signaling TSMC’s commitment to maintaining technological leadership in the chip industry.