Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker and key supplier to Apple and Nvidia, has reported a 58.3% surge in net profit for the first quarter of the year, driven by robust demand for artificial intelligence technology.
The company posted a record net profit of NT$572.5 billion ($18.1 billion) for the January-March period, surpassing analyst expectations. Revenue rose 8.4% from the previous quarter to $35.9 billion. TSMC expects further growth in the current quarter, with revenue forecast between $39 billion and $40.2 billion.
CEO C.C. Wei said AI-related demand remains “extremely robust,” and the company is expanding its chip fabrication plants in the US, Japan, and Taiwan, focusing on advanced 3-nanometer semiconductors used in smartphones and AI products. TSMC has committed $165 billion to building plants in Arizona alone.
However, the company warned of potential impacts from the Iran war, which has increased global supply chain costs and disrupted supplies of chemicals and gases like helium essential for chipmaking. CFO Wendell Huang said TSMC has prepared safety stock inventory for helium and does not expect any near-term impact on operations.
TSMC also announced that its capital spending for the next three years will be “significantly higher” than the past three years, with plans to spend $52 billion-$56 billion this year, up from about $40 billion in 2025. The company expects 2026 capital spending to be toward the higher end of that range.
