TSMC Q1 Sales Rise 35% to T$1.134 Trillion, Gross Margin 63–65% Forecast
Taiwan Semiconductor Manufacturing Company reported March-quarter sales of T$1.134 trillion, a 35% year-over-year increase, and is projected to earn $3.27 per American depositary receipt in Q1. The company anticipates a 63–65% gross margin range and plans $52 billion to $56 billion in 2026 capital spending focused on next-generation technologies.
1. Revenue and Earnings Forecast
Taiwan Semiconductor's March-quarter sales reached T$1.134 trillion, up 35% year-over-year, and analysts forecast Q1 earnings of $3.27 per ADR, reflecting robust demand for advanced chips.
2. Margin Guidance
Management projects a first-quarter gross margin between 63% and 65%, attributing strong pricing power to high-margin AI processor orders and continued efficiency gains in advanced nodes.
3. Capital Spending Plan
Capital expenditure is set at $52–56 billion for 2026, with the majority earmarked for next-generation 2nm and 3nm process technologies and expanded advanced packaging capacity.
4. Long-Term Growth Drivers
For full-year 2026, the company expects revenue growth of about 30% in U.S. dollars, driven by growing AI infrastructure buildouts and sustained demand for cutting-edge semiconductor solutions.