TSMC’s bullish quarter
- TSMC reported a strong first quarter and said AI‑related chip demand is “extremely robust.” - The foundry posted $35.9 billion in Q1 revenue and raised full‑year revenue growth guidance above 30% in U.S. dollars. - TSMC plans to expand 3nm production in Taiwan, the U.S. and Japan with mass production ramps into 2027–2028, prompting positive sector re‑ratings. ( ).
Taiwan Semiconductor Manufacturing Co. said on April 16 that demand for artificial intelligence chips is still “extremely robust,” after a first quarter that beat its own targets. (tsmc.com, cnbc.com) The company reported first-quarter revenue of $35.9 billion, above its prior guidance range of $34.6 billion to $35.8 billion, with gross margin at 66.2% and operating margin at 58.1%. It guided second-quarter revenue to $39.0 billion to $40.2 billion. (tsmc.com, tsmc.com) TSMC also raised its 2026 outlook and now expects revenue growth “approaching mid-30s percent” in U.S. dollar terms, up from earlier guidance of about mid-20s percent. Chief executive C.C. Wei said the increase reflects stronger artificial-intelligence demand and a better outlook for other end markets. (tsmc.com, tsmc.com) TSMC is the contract manufacturer that turns chip designs from companies such as Nvidia and Apple into finished silicon, so its results are used as a readout on the wider semiconductor market. In the first quarter, 61% of its revenue came from high-performance computing, the category that includes many artificial-intelligence chips. (cnbc.com, tsmc.com) The company is spending to add more of its most advanced production, including 3-nanometer lines in Taiwan, Arizona and Japan. A 3-nanometer process packs more transistors into the same area, which helps chips run faster or use less power. (economictimes.indiatimes.com, manufacturing.economictimes.indiatimes.com) In Japan, TSMC’s second fab is expected to start equipment installation and mass production of 3-nanometer wafers in 2028, with planned monthly capacity of 15,000 12-inch wafers. That is a shift from the company’s earlier Japan plans, which focused on older manufacturing nodes. (manufacturing.economictimes.indiatimes.com) TSMC’s U.S. expansion is centered in Arizona, where the company has already outlined multiple fabs as Washington pushes to localize more chip production. Its April 16 investor materials tied the higher 2026 growth forecast to continued demand for leading-edge and advanced packaging used in artificial-intelligence systems. (tsmc.com, tsmc.com) Investors still reacted cautiously on earnings day. TSMC shares fell about 3% on April 16 even after the company posted record profit growth, as analysts said expectations for artificial-intelligence chip companies had already run high. (cnbc.com) For now, TSMC’s message is that the bottleneck has not moved to demand. It has moved to how quickly the company can build enough leading-edge capacity to keep up. (tsmc.com, economictimes.indiatimes.com)
