TSMC net profit jumps 58% to record $18 billion as AI demand powers chip manufacturing boom

TSMC's Profit Surges 58% On AI-Driven Chip Demand

Taiwan Semiconductor Manufacturing Co. booked a 58% surge in profit, a sign that the Middle East war in its first few weeks did not depress booming AI investment. The main chipmaker to Nvidia Corp. and Apple Inc. reportedBloomberg Terminal net income for the March quarter of NT$572.5 billion ($18 billion), versus the average analysts' projection of NT$542.4 billion. TSMC this month posted a better-than-anticipated 35% jump in revenue. The results may help quell concerns that a prolonged crisis in the Middle East will dampen demand for power-hungry AI data centers and gadgets like the iPhone. The war has put pressure on global shipping routes and energy prices, and investors are looking for clues as to whether its impact will spread to tech giants' spending plans. TSMC and its top customers such as Nvidia face increasing skepticism they can keep growing at current rates, despite pledges from Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Microsoft Corp. to allocate $650 billion for AI expenditures this year. After explosive sales turned Nvidia into the world's most valuable company and TSMC the biggest company in Asia, investors are seeking assurances that booming AI spending can be maintained. There is also speculation that a prolonged crisis in the Middle East could disrupt supplies of critical chipmaking components and gases such as helium. Equipment supply constraints may also cap growth for the $1 trillion chip industry, as the likes of ASML Holding NV cannot add capacity fast enough to satisfy demand for cutting-edge machines from customers including TSMC. What Bloomberg Intelligence Says Extrapolating TSMC's March sales of NT$415.2 billion shows NT$1.13 trillion was achieved in 1Q (35% year-over-year growth), reinforcing our scenario analysis that AI-led demand for 3- and 5-nm chips is likely to keep 2Q sales growth in the high-single digits sequentially. Yet that strength may still not trigger an increase to the capital-spending budget target, as broad macroeconomic uncertainty and soft non-AI semiconductor demand are likely to persuade management to remain cautious. - Charles Shum, analyst Click hereBloomberg Terminal for research TSMC, which makes the vast majority of the world's most advanced semiconductors, is a primary beneficiary of a global race to build AI infrastructure given it's a central partner to Nvidia, Advanced Micro Devices Inc. and Broadcom Inc. Its shares have gained about 30% this year, outperforming its major customers. Read: TSMC Rides Retail Frenzy to New Stock Highs as AI Boom Returns It's also grappling with concerns that a persistent crunch of memory chips -- a component that TSMC does not make -- will shrink the global smartphone market for the first time since 2023. The Taiwanese chipmaker said at the beginning of 2026 that it supplies mostly high-end smartphones, which still saw strong demand and remain less sensitive to a price hike in storage components. As chips become a strategic asset for countries and companies pursuing AI, TSMC also faces new challengers trying to enter the white-hot field. Elon Musk is moving ahead with his ambitious Terafab project to make chips for the billionaire's ventures including Tesla Inc., SpaceX and xAI, while Tokyo is backing Rapidus Corp. in the hope that the startup can start to produce cutting-edge chips in 2027. Read: Musk Asks Suppliers to Move at 'Light Speed' on Terafab Project

Taiwan's chipmaker TSMC reports 58% jump in profit, warns about Iran war impacts

HONG KONG (AP) -- Taiwan's chipmaker TSMC, one of the world's largest companies, reported a 58% jump in profit on Thursday for the January-March quarter, thanks to strong demand driven by the artificial intelligence boom even as the Iran war was driving up costs. Taiwan Semiconductor Manufacturing Corp., a key supplier for Apple and Nvidia and the largest contract chipmaker in the world, reported a record net quarterly profit of 572.5 billion new Taiwan dollars ($18.1 billion) for the first three months of the year, better than analysts had expected. Profit for the quarter was 58.3% higher compared to the 361.6 billion new Taiwan dollars ($11.5 billion) booked the same period a year earlier. It was also 13.2% higher compared with the previous quarter in October-December. Revenue increased 8.4% in the January-March period from the previous three months to $35.9 billion, the company said. For the current April-June quarter, TSMC expected revenue to further grow to between $39 billion and $40.2 billion. As AI-related demand continues to surge, TSMC has been expanding chip fabrication plants in the U.S., Japan and Taiwan, with a focus on making more advanced 3-nanometer semiconductors that are used in smartphones and AI products. "AI-related demand continues to be extremely robust," C.C. Wei, TSMC's CEO and chairman, told an earnings conference on Thursday. "Our conviction in the multi-year AI megatrend remains high, and we believe the demand for semiconductors will continue to be very fundamental." TSMC also warned of potential impacts from the Iran war, which has not only pushed up global supply chain costs but is also disrupting the world's supply of chemicals and gas such as helium essential for chipmaking. Wendell Huang, TSMC's chief financial officer, said while rising costs stemming from the Iran war could weigh on profitability, the company has "prepared safety stock inventory on hand" including for helium and is not expecting "any near-term impact" on operations. TSMC has pledged huge investments in expanding its manufacturing capacity in Taiwan and abroad, including $165 billion of commitments in building plants in Arizona. The company said Thursday its capital spending for the next three years will be "significantly higher" than the past three years as it ramps up capacity to meet customers' growing demand. The chipmaker had earlier announced plans to raise its capital expenditure budget to $52 billion-$56 billion for this year from about $40 billion in 2025. It said Thursday it now expects capital spending in 2026 to be toward the higher end of that.

AI demand drives chipmaker TSMC's net profit to fresh record

Taipei (AFP) - Taiwanese chip maker TSMC said Thursday its net profit surged to a fresh record in the first quarter, fuelled by the global artificial intelligence race despite the war in the Middle East. Massive demand for AI hardware means business is booming for TSMC -- the biggest contract maker of microchips used in everything from Apple phones to Nvidia processors. Chief financial officer Wendell Huang said the company did not expect the war to impact its supply of key chipmaking materials such as helium and hydrogen in the near term. "We source from multiple suppliers in different regions, and we have prepared safety stock inventory on hand," Huang told an earnings call, adding that energy supplies were also sufficient to continue operations as normal for now. TSMC said net profit for the first three months of the year jumped 58.3 percent year-on-year to NT$572.5 billion ($18 billion), trouncing analyst estimates of NT$540.20 billion. Governments and tech giants are pouring huge sums into building data centres that can train and run AI tools such as chatbots, image generators and agents that can execute tasks. "The recent situation in the Middle East... brings further macroeconomic uncertainties, as such we are being prudent in our business planning," TSMC chairman CC Wei said. "Having said that, AI-related demand continues to be extremely robust," he added. "We maintain strong confidence for our full-year 2026 revenue to now grow by above 30 percent in US dollar terms." Tight helium supply Last month, Jensen Huang, head of top US chip designer Nvidia, said everyone in the tech world felt they could develop their AI and grow revenue "if they could just get more capacity". Ahead of Thursday's earnings announcement, Ian Lyall at Proactive Investors said it appeared TSMC is "so deeply embedded in the AI supply chain that macro headwinds are struggling to leave a mark". "The bleeding-edge manufacturing that only TSMC can reliably deliver at scale is running at capacity," he noted. A weaker Taiwanese dollar had also boosted the firm's revenues from overseas sales. On Thursday, it said quarterly net revenue rose 35.1 percent year-on-year to NT$1.13 trillion. A note from UBS analysts had predicted strong quarterly results for TSMC but warned that consumer demand was weakening as a result of higher prices caused by a global memory chip shortage that is a side-effect of the AI boom. "Cloud AI demand continues to strengthen, but we think supply constraints will limit meaningful upside for TSMC this year," the UBS team said. "Middle East tensions add a layer of macro uncertainty, but AI spend should stay insulated, barring a protracted conflict." The UBS analysts predicted "limited disruption from tight helium supply on TSMC's production". Helium gas is a key material in the chip supply chain, and Qatar -- one of the countries affected by the war in the Middle East -- is one of its few large-scale producers.

AI boom drives TSMC profit up 58%

The Taiwan-based chipmaker reported record revenue and profit, driven largely by strong demand for artificial intelligence chips and orders from major customers including Apple and Nvidia. The world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), reported a fourth consecutive quarter of record profits on Thursday, as demand for artificial intelligence chips drove a sharp rise in revenue and net income. "AI-related demand continues to be extremely robust," said chairman and chief executive Dr C.C. Wei during a post-earnings conference call. First-quarter net profit rose 58.3% from a year earlier to NT$572.48bn (€15.38bn, $18.11bn), equivalent to earnings of $3.49 per share, beating analysts' expectations. A survey of seven analysts by Zacks Investment Research had forecast earnings of $3.31 per share. Revenue increased 35.1% to NT$1.13tn (€30.5bn), also exceeding market forecasts. Gross margin for the quarter stood at 66.2%, with operating margin at 58.1% and net profit margin at 50.5%. Nearly three-quarters of wafer revenue came from advanced chip technologies, defined as 7-nanometre and below. "Our business in the first quarter was supported by strong demand for our leading-edge process technologies," said Wendell Huang, senior vice-president and chief financial officer. "Moving into the second quarter of 2026, we expect continued strong demand to support our business." TSMC raised its guidance for the year; it expects second-quarter revenue to rise further to between $39bn and $40.2bn, from $35.9bn in the first quarter. Commenting on future revenues, Ben Barringer, head of technology research at Quilter Cheviot, said, "The company did note that the high memory price is likely to be demand destructive for consumer electronics and that this may ultimately be a headwind in time, but the demand from AI likely offsets those concerns". TSMC also warned that geopolitical tensions could affect input costs. "Given the recent situation in the Middle East, prices for certain chemicals and gases are likely to increase," Dr Wei said. "Based on our current assessment, there may be an impact on profitability, but it is too early to quantify." However, TSMC said it does not expect any immediate disruption to operations. It sources key materials, including helium and hydrogen, from multiple suppliers across different regions and maintains safety stock inventories. The company added that it is continuing to diversify its supplier base and strengthen the resilience of its supply chain. "While not completely shielded from increased energy costs, the company has done a good job of working with its supply chain to help mitigate these and keep margins strong," Barringer said.

AI demand drives chipmaker TSMC's net profit to fresh record

Governments and tech giants are pouring hundreds of billions of dollars into building new data centres that can run and train AI tools such as chatbots, image generators and agents that can execute tasks. TSMC said its net profit for the first quarter of 2026 rose a whopping 58.3% from a year ago to NT$572.5 billion ($18 billion). Taiwanese chip manufacturer TSMC said Thursday that net profit for January-March leaped to a fresh quarterly record, boosted by the race to develop artificial intelligence technology. Massive global demand for AI hardware means business is booming for TSMC, the world's biggest contract maker of microchips used in everything from Apple phones to Nvidia's AI processors. TSMC said its net profit for the first quarter of 2026 rose a whopping 58.3% from a year ago to NT$572.5 billion ($18 billion). The figure trounced estimates of NT$540.20 billion in a Bloomberg survey of analysts. Governments and tech giants are pouring hundreds of billions of dollars into building new data centres that can run and train AI tools such as chatbots, image generators and agents that can execute tasks. Last month, Jensen Huang, head of top US chip designer Nvidia, said the entire tech world feels they could develop their AI and grow revenue "if they could just get more capacity". Ahead of the earnings announcement, Ian Lyall at Proactive Investors said it appeared TSMC is "so deeply embedded in the AI supply chain that macro headwinds are struggling to leave a mark". "Advanced-node chip production, the bleeding-edge manufacturing that only TSMC can reliably deliver at scale, is running at capacity," he noted. TSMC is "supplying chips for artificial intelligence accelerators, next-generation smartphones, and the data centre build-out that is consuming capital at a pace that has surprised even its most bullish observers", Lyall said. A weaker Taiwanese dollar had also boosted TSMC's revenues from overseas sales. On Thursday, TSMC said net revenue for the first quarter came in at NT$1.13 trillion, up 35.1% year-on-year. A note from UBS analysts had predicted strong quarterly results for TSMC but warned that consumer demand was weakening as a result of higher prices caused by a global memory chip shortage fuelled by the AI boom. "Cloud AI demand continues to strengthen, but we think supply constraints will limit meaningful upside for TSMC this year," the UBS team said. "Middle East tensions add a layer of macro uncertainty, but AI spend should stay insulated, barring a protracted conflict." The UBS analysts predicted "limited disruption from tight helium supply on TSMC's production". Helium gas is a key material in the chip supply chain, and Qatar -- one of the countries affected by the war in the Middle East -- is one of its few large-scale producers. TSMC said Thursday it does not expect the war to impact its supply of chipmaking materials such as helium and hydrogen in the near term.

Taiwan's chipmaker TSMC reports 58% jump in profit, warns about Iran war impacts

HONG KONG -- Taiwan's chipmaker TSMC, one of the world's largest companies, reported a 58 per cent jump in profit on Thursday for the January-March quarter, thanks to strong demand driven by the artificial intelligence boom even as the Iran war was driving up costs. Taiwan Semiconductor Manufacturing Corp., a key supplier for Apple and Nvidia and the largest contract chipmaker in the world, reported a record net quarterly profit of 572.5 billion new Taiwan dollars ($18.1 billion) for the first three months of the year, better than analysts had expected. Profit for the quarter was 58.3% higher compared to the 361.6 billion new Taiwan dollars ($11.5 billion) booked the same period a year earlier. It was also 13.2% higher compared with the previous quarter in October-December. Revenue increased 8.4% in the January-March period from the previous three months to $35.9 billion, the company said. For the current April-June quarter, TSMC expected revenue to further grow to between $39 billion and $40.2 billion. As AI-related demand continues to surge, TSMC has been expanding chip fabrication plants in the U.S., Japan and Taiwan, with a focus on making more advanced 3-nanometer semiconductors that are used in smartphones and AI products. "AI-related demand continues to be extremely robust," C.C. Wei, TSMC's CEO and chairman, told an earnings conference on Thursday. "Our conviction in the multi-year AI megatrend remains high, and we believe the demand for semiconductors will continue to be very fundamental." TSMC also warned of potential impacts from the Iran war, which has not only pushed up global supply chain costs but is also disrupting the world's supply of chemicals and gas such as helium essential for chipmaking. Wendell Huang, TSMC's chief financial officer, said while rising costs stemming from the Iran war could weigh on profitability, the company has "prepared safety stock inventory on hand" including for helium and is not expecting "any near-term impact" on operations. TSMC has pledged huge investments in expanding its manufacturing capacity in Taiwan and abroad, including $165 billion of commitments in building plants in Arizona. The company said Thursday its capital spending for the next three years will be "significantly higher" than the past three years as it ramps up capacity to meet customers' growing demand. The chipmaker had earlier announced plans to raise its capital expenditure budget to $52 billion-$56 billion for this year from about $40 billion in 2025. It said Thursday it now expects capital spending in 2026 to be toward the higher end of that.

TSMC lifts revenue forecast, pledges spending to meet AI chip demand

STORY: TSMC raised its annual revenue forecast on Thursday (April 16). The tech giant further said it's stepping up capital spending this year. That as the world's biggest contract manufacturer of advanced AI chips tries to meet massive demand for its products. The bullish outlook comes after the company - which is a major Nvidia supplier - said first-quarter profit leapt 58% to a record $18.2 billion. That was well ahead of expectations and marked its eighth straight quarter of double-digit growth. CEO C.C. Wei said TSMC was being prudent in planning due to uncertainty caused by the Middle East conflict. He also said AI-related demand was still "extremely robust". His remarks were likely to ease investor worries about the impact of the war. He added full-year revenue in U.S. dollar terms would grow more than 30% - that's up from a previous forecast of close to 30%. While capital expenditure would be at the high end of its earlier guidance of $52 billion to $56 billion. Looking ahead, TSMC forecast sales between $39 billion and just over $40 billion for the current quarter. That's well up from the same period last year and a jump from close to $36 billion in the first quarter. The huge demand for high-performance chips needed for AI has driven Asia's most valuable company to new heights. TSMC's shares have gained more than a third so far this year.

TSMC set to post 50% quarterly profit jump, extend record earnings on insatiable AI demand

TAIPEI, April 16 (Reuters) - TSMC, the world's largest manufacturer of advanced artificial intelligence chips, will likely notch up a fourth consecutive quarter of record earnings with a 50% surge in net profit for January-March driven by booming demand for AI infrastructure. Demand for Taiwan Semiconductor Manufacturing Co's 3-nanometre technology to produce AI chips and its advanced packaging technology continues to outstrip the firm's current production capacity, according to analysts. That's driven Asia's most valuable company, a key supplier to Nvidia and Apple, to new heights. Its market capitalisation is now nearly double that of South Korean rival Samsung Electronics at around $1.68 trillion. On Thursday, TSMC is expected to report a net profit of T$543.3 billion ($17.23 billion) for the first quarter, according to an LSEG SmartEstimate compiled from 19 analysts. SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate. An earnings call at which it will provide second-quarter and updated full-year guidance is scheduled for 0600 GMT. A profit above T$505.7 billion would mark the company's highest-ever quarterly net income and its ninth consecutive quarter of profit growth. Last week, it posted a 35% year-on-year rise in first-quarter revenue, ahead of market forecasts. The war in the Middle East threatens to disrupt the supply of production materials for semiconductors such as helium and neon, but TSMC is seen by analysts as well-placed to weather the crisis. One area of focus will be whether TSMC maintains or raises its 2026 capital spending plans as that will reflect management's confidence in long-term AI demand, analysts said. At its last earnings call in January, the company said capital spending this year would hit between $52 billion and $56 billion, up as much as 37% compared with 2025's $40.9 billion. TSMC is investing $165 billion to build chip factories in the U.S. state of Arizona. The company has also revised its plans in Japan and is now set to manufacture 3-nanometre chips there, instead of focusing on more mature nodes. TSMC's Taipei-listed shares have gained 34% so far this year, outperforming the 27% rise for the broader market. (Reporting by Wen-Yee Lee and Ben Blanchard; Editing by Muralikumar Anantharaman)