TSMC still dominant
Analysts say TSMC’s position in advanced chipmaking remains intact, with expectations that first-quarter revenue will confirm continued dominance even as Japan and the U.S. pursue alternatives (reuters.com). Market summaries report record-like revenue growth—first-quarter increases in the mid-30s percent range—and note TSMC’s $65 billion Arizona expansion as part of customer and government efforts to diversify supply (quiverquant.com)+Opinions+on+Record+Q1+Revenue | ).
Taiwan Semiconductor Manufacturing Co. is still setting the pace in advanced chipmaking, even as the United States and Japan spend heavily to build rival capacity. (pr.tsmc.com) The company said on April 10 that first-quarter 2026 revenue reached NT$1.134 trillion, up 35.1% from a year earlier, after March revenue rose 45.2% to NT$415.19 billion. (pr.tsmc.com) Reuters reported on April 13 that analysts expected a fourth straight quarter of record profit when Taiwan Semiconductor Manufacturing Co. reports full earnings, driven by demand for artificial intelligence infrastructure. (reuters.com) Advanced chipmaking means producing the smallest, fastest processors, the parts used in Nvidia artificial intelligence accelerators and the latest Apple and Advanced Micro Devices designs. Taiwan Semiconductor Manufacturing Co. remains the main contract manufacturer at that leading edge. (reuters.com) Its own filings show how concentrated that business is. In the fourth quarter of 2025, chips made on 3-nanometer, 5-nanometer and 7-nanometer processes accounted for 77% of wafer revenue. (investing.com) Washington is pushing for more production outside Taiwan, and Taiwan Semiconductor Manufacturing Co. said in March 2025 that it would add $100 billion to its Arizona plan on top of an existing $65 billion commitment. The company said total planned United States investment would reach $165 billion. (pr.tsmc.com) That Arizona buildout includes six wafer fabs, two advanced packaging facilities and a research and development center, according to the company’s March 2025 announcement. Packaging is the step that connects finished chips so they can work inside servers and phones. (pr.tsmc.com) Japan is also backing alternatives. Reuters Breakingviews wrote on April 15 that government-supported efforts there and in the United States are aimed at reducing dependence on one supplier, but that Taiwan Semiconductor Manufacturing Co.’s lead still looks intact. (reuters.com) Taiwan Semiconductor Manufacturing Co. has another benchmark coming in the second half of 2026, when it has said its A16 process will enter production. That timetable sets up the next test of whether challengers can narrow the gap at the leading edge. (reuters.com)
