Investing.com– TSMC (NYSE: ) clocked a strong increase in its sales for December as the world’s largest contract chipmaker continues to see strong demand from the fast-growing artificial intelligence industry.

Sales rose 57.8% year-on-year to T$278.16 billion ($8.44 billion), TSMC said in a statement on Friday. The pace of growth also picked up significantly from last month,.

The figure brought TSMC’s fourth-quarter revenue to T$868.46 billion, up from T$625.53 billion seen last year.

Strong sales set a positive tone for chip demand heading into 2025, as TSMC continues to benefit from increased capital spending on data centers and other AI-related infrastructure. This trend has largely offset weakness in chip demand from consumer electronics, which TSMC warned is unlikely to improve in the near term.

The chipmaker is an important part of the global chip supply chain, and produces chips for many major technology companies. AI darling NVIDIA Corporation (NASDAQ: ) is TSMC’s largest customer, and has been a key source of AI-fueled demand for the past two years.

TSMC will report fourth quarter earnings next week.