TSMC's AI surge
Taiwan Semiconductor posted a 58% jump in first‑quarter net income as AI chip demand from Nvidia and Apple outpaced supply and retail investors pushed the stock to record highs. (kaohooninternational.com) That market concentration is prompting hedges across the industry — global semiconductor‑equipment sales rose 15% in 2025 to $135.1bn as firms expand AI capacity, while projects like Japan’s Rapidus and a Musk‑Intel tie‑up signal efforts to reduce single‑point dependence. ( )
Taiwan Semiconductor Manufacturing said on April 16 that first-quarter net income jumped 58.3% as demand for artificial intelligence chips kept outrunning supply. (pr.tsmc.com) The company reported net income of NT$572.48 billion on revenue of NT$1.134 trillion for the quarter ended March 31, up 35.1% from a year earlier. Diluted earnings per share rose to NT$22.08. (pr.tsmc.com) Reuters reported TSMC also raised its 2026 revenue growth outlook and said capital spending would move toward the upper end of its existing range as it adds capacity for advanced chips used in artificial intelligence systems. CNBC reported the quarter was TSMC’s fourth straight record profit. (reuters.com) (cnbc.com) TSMC sits in the middle of the artificial intelligence supply chain because it manufactures leading-edge processors designed by companies such as Nvidia and Apple. When orders for those chips rise faster than factories can expand, profits at the foundry rise with them. (reuters.com) (pr.tsmc.com) That concentration is pushing the rest of the industry to buy more of the machines needed to build rival capacity. Semiconductor equipment sales rose 15% worldwide in 2025 to a record $135.1 billion, according to SEMI. (semi.org) SEMI said the spending was driven by investment in advanced logic, memory, and artificial-intelligence-related capacity expansion. Test-equipment billings jumped 55% and assembly and packaging equipment sales rose 21% as chipmakers prepared more complex products. (semi.org) Japan’s Rapidus is one of the clearest examples of that hedge. The company said its 2-nanometer pilot line started up in April 2025, and it is targeting mass production in 2027. (rapidus.inc) Intel is also trying to win a bigger share of advanced manufacturing. Intel Foundry says customers can begin engagements on its 18A process, part of a push to compete more directly with Taiwan Semiconductor Manufacturing for leading-edge chip orders. (intel.com) For now, the numbers still point one way. TSMC’s quarter shows that the artificial intelligence boom is filling its fabs faster than competitors can build alternatives. (pr.tsmc.com)
