TSMC’s dominance and dependence
Analysts say TSMC’s Q1 revenue rose roughly 35% year‑on‑year to about $35.6–35.7 billion, driven by AI‑chip demand, underscoring its dominant position in advanced chipmaking. (heygotrade.com) (reuters.com). At the same time, mentions of Japanese and Intel ties reflect buyer unease about concentration risk and supply‑chain vulnerabilities. (reuters.com)
Taiwan Semiconductor Manufacturing Co. is turning the artificial intelligence boom into record sales, even as customers push it to spread production beyond Taiwan. (pr.tsmc.com) On April 10, the company said March revenue reached about NT$415.19 billion, up 45.2% from a year earlier, and first-quarter revenue hit NT$1.134 trillion, up 35.1%. TSMC’s investor site lists first-quarter revenue at $34.6 billion to $35.8 billion under its January guidance and actual results. (pr.tsmc.com) (investor.tsmc.com) Reuters reported on April 13 that analysts expect first-quarter net profit of about NT$542.6 billion, which would be a fourth straight quarterly record, as demand for artificial intelligence infrastructure keeps lifting orders. Reuters also said TSMC’s market value has climbed to about $1.6 trillion, nearly double Samsung Electronics. (reuters.com) TSMC is the factory behind many of the chips designed by Nvidia, Apple and Advanced Micro Devices, and analysts told Reuters that its 3-nanometer production and advanced packaging are still running tighter than demand. In plain terms, TSMC does not just print the chips; it also does the dense final assembly that lets artificial intelligence processors move data and power fast enough to train large models. (reuters.com) That concentration has pushed governments and buyers to fund backup capacity. TSMC said on March 4, 2025 that it would raise its planned United States investment to $165 billion, adding to its Phoenix, Arizona buildout. (pr.tsmc.com) Japan is part of the same shift. Reuters reported this week that TSMC has revised its Japan plan and is now set to make 3-nanometer chips there, instead of limiting the site to older, less advanced production. (reuters.com) Intel is trying to turn that unease into foundry business. Intel says customers can already begin designs on its Intel 14A process, the node after Intel 18A, while TSMC said in 2024 that its A16 process would enter production in the second half of 2026. (intel.com) (reuters.com) Independent researchers still show how far ahead TSMC remains. Counterpoint Research said the broader “Foundry 2.0” market grew 17% year over year in the third quarter of 2025, with TSMC gaining share on the back of 3-nanometer ramp-up and strong 4-nanometer and 5-nanometer demand tied to artificial intelligence. (counterpointresearch.com) TSMC reports full first-quarter earnings on April 16, 2026. The numbers will show whether the company can keep expanding fast enough to satisfy customers that increasingly want the same thing twice: TSMC’s technology, and less dependence on one place. (investor.tsmc.com)
