TSMC Q1 Revenue Soars 35% to NT$1.13 Trillion on AI Chip Demand
Taiwan Semiconductor Manufacturing Co. generated NT$1.13 trillion ($35.6 billion) in Q1 revenue, topping the NT$1.12 trillion consensus and marking a 35% year-on-year increase. March revenue rose 45.2% to NT$415.2 billion, supported by resilient AI chip orders and leading-edge chip price hikes.
1. Q1 Earnings Beat Expectations
TSMC reported NT$1.13 trillion in Q1 revenue, surpassing the NT$1.12 trillion consensus and marking a 35% year-over-year gain. Monthly results showed March revenue of NT$415.2 billion, up 45.2% year-over-year.
2. AI Chip Demand and Price Hikes
Strong AI chip orders from major clients such as Apple and Nvidia drove robust sales, while price increases on leading-edge chips boosted revenue and supported a projected gross margin of around 64%.
3. Emerging Risks and Offsetting Factors
Logistics challenges stemming from Middle East instability and memory shortages weighed on certain segments, but AI-related orders more than offset weakness in smartphone and PC demand.
4. Expansion Plans and Growth Outlook
TSMC plans to invest up to $56 billion in new factories outside Taiwan and in the U.S. to meet rising AI chip demand, targeting 30% annual revenue growth in U.S. dollar terms for 2026.