TSMC Q1 Revenue Climbs 40.6% with 66.2% Margin, 3nm Sales at 34%
Taiwan Semiconductor Manufacturing reported Q1 revenue up 40.6% year-over-year with gross margin at 66.2%, as 3nm node sales comprised 34% of its advanced node revenue. Management forecast Q2 sales growth of 8.6–12% and projects over 30% full-year revenue growth in 2026.
1. Q1 Financial Results
Taiwan Semiconductor Manufacturing delivered revenue growth of 40.6% in Q1, driven by robust demand for advanced chips. Gross margin expanded to 66.2%, reflecting strong pricing power and efficient cost management across its manufacturing processes.
2. 3nm Node Ramp
Sales from the 3nm node accounted for 34% of advanced node revenue in the quarter, accelerating margin accretion. The rapid adoption of 3nm technology underscores TSMC’s leadership in the most advanced semiconductor processes and supports future profitability.
3. Outlook and Guidance
Management guided Q2 sales growth of 8.6–12% and reiterated expectations for over 30% revenue growth in 2026. Continued capacity expansions and surging AI-related demand, including from cloud service providers, are cited as key drivers of the company’s outlook.