Taiwan Semiconductor Raises Full-Year Revenue Outlook Above 30% After 58% Profit Surge
Taiwan Semiconductor posted a record NT$572.5 billion first-quarter net income, a 58% year-over-year increase, and lifted its full-year revenue outlook to exceed 30% growth in dollar terms. The company plans capex toward the high end of its $52 billion–$56 billion budget and forecasts Q2 sales of $39 billion–$40.2 billion.
1. Record First-Quarter Performance
Taiwan Semiconductor delivered a record NT$572.5 billion ($18.2 billion) net profit in Q1, a 58% increase year-over-year, with revenue climbing 35.1% to NT$1.13 trillion and earnings per share at NT$22.08, extending its streak of double-digit profit growth to eight quarters with a 66.2% gross margin.
2. Elevated Capital Spending Guidance
The company raised its capital expenditure projection to the top of its US$52 billion–US$56 billion range, with planned investments in advanced-node capacity expansion, including the US Arizona plant backed by a US$165 billion commitment over coming years.
3. AI Megatrend and 3nm Node Expansion
Robust demand for AI chips drove chips on the 3 nm node to 25% of total revenue, up from 6% in Q3 2023; Taiwan Semiconductor is scaling 3 nm output at facilities in Taiwan, the US, and Japan, targeting mass production expansion in 2027 and 2028.
4. Supply Chain Resilience and Geopolitical Risks
Management acknowledged that Middle East tensions could raise costs for key chemicals and gases but does not foresee immediate operational disruption, citing diversified suppliers, safety stock inventories, and ongoing efforts to strengthen supply-chain resilience.