Taiwan Semiconductor Manufacturing Co.’s May sales rose 30% to NT$229.6 billion ($7.1 billion), helped by booming demand for artificial intelligence and a recovery in some consumer electronics.

The world’s largest contract chipmaker has benefited from a global race to develop AI services, producing semiconductors for Nvidia Corp. that are then sold to the likes of Microsoft Corp. and OpenAI. Worldwide smartphone sales also emerged from a longstanding slump in the first three months of the year, fueling expectations for strong orders of mobile chips.

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

This week, TSMC Chairman and Chief Executive Officer C.C. Wei reiterated expectations for AI development driving a sector-wide recovery this year.