TSMC posts record profit
TSMC reported a 58% jump in first-quarter net profit and raised its full-year revenue forecast as demand for AI processors stayed strong. Management said 3‑nanometre chips made up about 25% of wafer revenue and the company plans higher capital spending to meet AI‑chip demand (Reuters) (reuters.com). The earnings-call transcript added that revenue rose 6.4% sequentially in dollar terms and management now expects sales growth north of 30% for 2026 (Investing.com) (investing.com).
Taiwan Semiconductor Manufacturing Co. posted a record first quarter on April 16, with net profit rising 58% as orders for artificial intelligence chips stayed strong. (investor.tsmc.com) Net income reached NT$572.48 billion in the January-to-March quarter, up from NT$361.56 billion a year earlier, while revenue rose to NT$1.134 trillion, or $35.90 billion. The company beat its own guidance and topped analyst estimates tracked by LSEG. (investor.tsmc.com) (cnbc.com) Taiwan Semiconductor Manufacturing Co. now expects 2026 revenue to grow by more than 30% in U.S. dollar terms, and it guided second-quarter revenue to $39.0 billion to $40.2 billion. Gross margin was 66.2% in the first quarter, up from 62.3% in the prior quarter. (cnbc.com) (investor.tsmc.com) Taiwan Semiconductor Manufacturing Co. is the world’s largest contract chipmaker, which means it builds processors designed by companies such as Nvidia and Apple rather than selling most chips under its own brand. That puts it at the center of the artificial intelligence buildout, because advanced processors for data centers depend on its factories. (money.usnews.com) (cnbc.com) The strongest demand came from high-performance computing, the category that includes artificial intelligence and 5G chips, which accounted for 61% of first-quarter revenue. Advanced chips also dominated the mix, with technology at 7 nanometers and below making up 75% of wafer revenue. (cnbc.com) (investor.tsmc.com) In chipmaking, a smaller nanometer number usually means more transistors packed into the same space, which helps processors run faster or use less power. Management said 3-nanometer chips alone contributed about one-quarter of wafer revenue in the quarter. (money.usnews.com) (investor.tsmc.com) Executives said artificial intelligence demand remained “extremely robust” and pointed investors to a multi-year growth trend, while also saying the company had not seen a near-term hit from Middle East-related supply disruptions. The company said it buys specialty gases and chemicals, including helium and hydrogen, from multiple sources and holds safety inventory. (cnbc.com) The next test is whether Taiwan Semiconductor Manufacturing Co. can add enough advanced capacity to keep up with customers that are still racing to build more artificial intelligence systems. Its April 16 guidance says demand has not cooled yet. (investor.tsmc.com) (cnbc.com)
