Taiwan Semiconductor Forecasts Q2 Revenue Up 10% Sequentially, 32% Year-Over-Year
Taiwan Semiconductor Manufacturing Co expects Q2 revenue to rise 10% sequentially and 32% year-over-year, driven by robust HPC and AI demand for 3-nanometer chips. Gross margins will face pressure from overseas fab expansions and initial 2-nanometer ramp, while CapEx is guided to the high end of its range.
1. Q2 Revenue Guidance and Growth
Taiwan Semiconductor forecasts second-quarter revenue to increase 10% sequentially and 32% year-over-year at the midpoint, reflecting strong orders for high-performance computing and AI applications leveraging its 3-nanometer process technology.
2. Gross Margin Outlook
The company anticipates gross margin dilution from ramping its overseas fabrication facilities and the initial production stages of its 2-nanometer nodes, compounded by rising component costs and macroeconomic uncertainties.
3. CapEx Raised to High End
Management has guided capital expenditures to the high end of its previous range, citing robust demand for advanced nodes; long-term CapEx is set to exceed prior levels, though revenue growth is expected to outpace spending.
4. Ongoing Supply Constraints
With fab construction and equipment lead times of two to three years, TSMC expects capacity tightness to persist into 2027, prompting accelerated partnerships with construction and equipment suppliers to meet demand.