TSMC raises AI chip outlook
TSMC said first‑quarter profit jumped and it raised its 2026 revenue outlook as it steps up capital spending to meet persistent AI chip demand. The company linked the stronger results and higher capex to continued demand from AI customers, underscoring pressure on semiconductor supply capacity. (reuters.com)
Taiwan Semiconductor Manufacturing raised its 2026 sales outlook on Thursday after first-quarter profit jumped on demand for artificial intelligence chips. (reuters.com) Net income for the January-to-March quarter rose to NT$572.48 billion, up 58.3% from NT$361.56 billion a year earlier, while revenue reached US$35.90 billion, above the company’s own guidance range. (investor.tsmc.com) For the second quarter, Taiwan Semiconductor Manufacturing forecast revenue of US$39.0 billion to US$40.2 billion, with gross margin of 65.5% to 67.5%. Reuters reported the company also lifted its full-year 2026 revenue growth target to above 30% in U.S. dollar terms. (investor.tsmc.com, reuters.com) Taiwan Semiconductor Manufacturing is the main factory for many chip designers that do not run their own plants. When cloud companies and chip firms order more artificial intelligence processors, the strain shows up first in Taiwan Semiconductor Manufacturing’s factories, packaging lines, and spending plans. (tsmc.com, reuters.com) That demand is concentrated in advanced chips and the equipment around them. In the first quarter, 7-nanometer and smaller technologies made up 73% of wafer revenue, and high-performance computing accounted for 59% of sales by platform. (investor.tsmc.com) Reuters said the company is stepping up capital spending in 2026 as it tries to add enough capacity for that demand. Chief Executive C.C. Wei said customers’ appetite for artificial intelligence chips remained strong, even as the industry faces limits in how fast new capacity can be built. (reuters.com) The company’s scale gives those numbers wider weight across the industry. Taiwan Semiconductor Manufacturing said it served about 465 customers in 2025 and produced more than 9,920 products, making its quarterly outlook a readout on spending by companies building data centers and artificial intelligence systems. (investor.tsmc.com) The next test is whether Taiwan Semiconductor Manufacturing can keep expanding fast enough to match orders without eroding margins. Thursday’s forecast said demand is still outrunning caution. (investor.tsmc.com, reuters.com)
