Nvidia Supplier TSMC Forecasts 50% Q1 Profit Surge to T$543.3B
Taiwan Semiconductor Manufacturing Co expects first-quarter net profit of T$543.3 billion, up 50% year-over-year, driven by overwhelming demand for 3-nanometre AI chips. Production constraints on advanced packaging tech could heighten supply tightness for Nvidia's next-generation GPUs.
1. Profit Surge Driven by AI Chip Demand
TSMC expects first-quarter net profit of T$543.3 billion, a 50% increase year-over-year, marking its fourth record quarter as demand for advanced AI infrastructure chips reaches unprecedented levels.
2. Supply Constraints on 3nm Production
Demand for TSMC’s 3-nanometre technology and advanced packaging continues to outstrip current capacity, raising concerns over potential GPU shortages for key customers such as Nvidia.
3. Expanded Capital Expenditure Plans
TSMC has planned $52–56 billion in capital spending for 2026—up as much as 37%—and is investing $165 billion in Arizona to scale production of cutting-edge nodes.