Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker and a key supplier to Apple and Nvidia, has reported a 58 per cent jump in net profit for the first quarter of the year, driven by robust demand for artificial intelligence (AI) technology.
The company posted a record net profit of 572.5 billion new Taiwan dollars ($18.1 billion) for the three months to March, surpassing analyst expectations. Revenue for the quarter rose 8.4 per cent from the previous quarter to $35.9 billion.
TSMC is expanding its chip fabrication plants in the US, Japan, and Taiwan, focusing on advanced 3-nanometer semiconductors used in smartphones and AI products. CEO C.C. Wei said AI-related demand remains extremely robust, and the company expects revenue for the current quarter to reach between $39 billion and $40.2 billion.
However, the company warned of potential impacts from the Iran war, which has pushed up global supply chain costs and disrupted supplies of chemicals and gases such as helium, essential for chipmaking. Chief Financial Officer Wendell Huang said TSMC has prepared safety stock inventory for helium and does not expect any near-term impact on operations.
TSMC has pledged significant investments in expanding manufacturing capacity, including $165 billion in building plants in Arizona. The company said capital spending over the next three years will be significantly higher than the past three years, with a budget of $52 billion to $56 billion for this year.
