TSMC Raises Revenue Forecast Above 30%, Plans $56B Capital Spend to Meet AI Demand
TSMC raised its full-year revenue forecast to over 30% growth in US dollars and set Q2 sales guidance of $39–40 billion. The company will target $56 billion in capital expenditure at the high end of its $52–56 billion range to meet surging AI chip demand.
1. Revenue Forecast Revision
TSMC lifted its full-year revenue growth target to more than 30% in US dollars, up from a prior forecast of close to 30%, and projected second-quarter sales of $39 billion to just over $40 billion.
2. Strong First-Quarter Results
First-quarter net profit soared 58% year-over-year to a record $18.2 billion, marking the company's eighth consecutive quarter of double-digit profit growth driven by strong demand for advanced AI chips.
3. Capital Spending and AI Demand
The company plans to allocate capital expenditure at the high end of its $52–56 billion guidance, reflecting a decisive push to expand production capacity for AI workloads and address robust customer demand.