Taiwan Semiconductor Manufacturing Corp. (TSMC), the world's largest contract chipmaker and a key supplier for Apple and Nvidia, announced a 58% year-on-year jump in net profit for the January-March quarter, reaching a record 572.5 billion new Taiwan dollars ($18.1 billion) [1]. This result exceeded analysts' expectations and marked a 13.2% increase from the previous quarter's profit of 361.6 billion new Taiwan dollars ($11.5 billion) [1]. Revenue for the quarter rose 8.4% from the prior three months to $35.9 billion, with TSMC projecting further growth to between $39 billion and $40.2 billion for the April-June quarter [1].
The company attributed its strong performance to robust demand for chips driven by the artificial intelligence boom, with CEO and chairman C.C. Wei stating, “AI-related demand continues to be extremely robust,” and expressing high conviction in the multi-year AI megatrend [1]. TSMC is expanding its chip fabrication plants in the U.S., Japan, and Taiwan, focusing on advanced 3-nanometer semiconductors used in smartphones and AI products [1].
Despite the positive results, TSMC warned of potential impacts from the Iran war, which has increased global supply chain costs and disrupted supplies of essential chemicals and gases such as helium [1]. However, CFO Wendell Huang noted that the company has prepared safety stock inventory and does not expect any near-term operational impact [1].
TSMC reaffirmed its commitment to significant capital investments, pledging $165 billion for new plants in Arizona and announcing that capital spending for the next three years will be “significantly higher” than the past three years [1]. The company raised its capital expenditure budget for this year to $52 billion-$56 billion, up from about $40 billion in 2025, and expects 2026 spending to be at the higher end of that range [1].
CONCLUSION
TSMC delivered record profits and revenue growth, fueled by strong AI-driven chip demand and outpacing analyst expectations. The company is responding with aggressive capital spending plans, while closely monitoring geopolitical risks. Overall, TSMC's outlook remains highly positive, underpinned by continued expansion and robust market demand.