TSMC just told the market something Wall Street already suspected but needed to hear out loud: AI chip demand isn’t slowing down. The Taiwanese semiconductor giant raised its 2026 full-year revenue growth forecast to more than 30% in USD terms, following a first quarter where revenue climbed 35% year-over-year to roughly $35.9 billion.
The numbers behind the AI chip frenzy
May 2026 revenue hit NT$416.98 billion, a 30.1% jump from the same month last year. The first five months of 2026 have maintained a consistent 30% year-over-year growth clip.
The engine powering this growth has a name: Chip-on-Wafer-on-Substrate, or CoWoS. It’s an advanced packaging technology that stacks chips together so AI accelerators can communicate with High Bandwidth Memory at blistering speeds.
CoWoS capacity is fully booked through 2026. Even with TSMC racing to expand production to between 90,000 and 130,000 wafers per month by year’s end, demand still outstrips supply. NVIDIA alone reportedly accounts for 50-60% of TSMC’s CoWoS allocation.
