TAIPEI (Taiwan News) — TSMC posted Friday a March revenue of NT$415.19 billion (US$13.06 billion) and Q1 revenue of NT$1.13 trillion, both record highs driven by strong demand for AI chips.

March revenue rose 30.7% from a month earlier and 45.2% from a year ago, per CNA. Q1 revenue increased 8.41% quarter-on-quarter and 35.1% year-on-year.

The results slightly exceeded the company’s earlier forecast of NT$1.09 trillion to NT$1.14 trillion in quarterly revenue. The guidance was based on an exchange rate assumption of NT$31.60 to the US dollar.

Market analysts said demand for AI accelerators built on advanced 3 nm processes was a key driver behind the performance, CNA reported.

TSMC said it expects strong expansion this year, with revenue in US dollar terms projected to grow nearly 30%. The company is scheduled to hold an investor conference on Thursday to release full Q1 results and provide Q2 guidance.