Taiwan Semiconductor Manufacturing Firm (TSMC) headquarters in Hsinchu, Taiwan, on April 16, 2025.
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Taiwan Semiconductor Manufacturing Firm on Thursday beat profit expectations for the primary quarter, due to a continued surge in demand for AI chips.
Listed below are TSMC’s first-quarter outcomes versus LSEG consensus estimates:
- Income: $839.25 billion New Taiwan {dollars}, vs. NT$835.13 billion anticipated
- Web revenue: NT$361.56 billion, vs. NT$354.14 billion
TSMC’s web revenue elevated 60.3% from the identical interval final 12 months to NT$361.56 billion, whereas web income within the March quarter rose 41.6% to NT$839.25 billion.
Superior applied sciences, outlined as 7-nanometer and fewer, accounted for 73% of complete wafer income, the corporate mentioned.
The world’s largest contract chip producer has benefited from the AI growth because it produces superior processors for purchasers such American chip designer Nvidia.
Nonetheless, the corporate faces headwinds from the trade policy of U.S. President Donald Trump, who has positioned broad trade tariffs on Taiwan and stricter export controls on TSMC purchasers Nvidia and AMD.
Semiconductor export controls may be expanded subsequent month beneath the “AI diffusion guidelines” first proposed by the Biden administration, additional limiting the gross sales of chipmakers that use TSMC foundries.
Taiwan at present faces a blanket 10% tariff from the Trump administration and that would rise to 32% after the President’s 90-day pause of his “reciprocal tariffs” ends until it reaches a cope with the U.S.
As a part of efforts to diversify its provide chains, TSMC has been investing billions in abroad amenities, although the lion’s share of its manufacturing stays in Taiwan.
In an obvious response to Trump’s trade policy, TSMC final month introduced plans to speculate a further $100 billion within the U.S. on prime of the $65 billion it has dedicated to 3 crops within the U.S.
On Monday, AMD mentioned it could quickly manufacture processor chips at one of many new Arizona-based TSMC amenities, marking the primary time that its chips can be manufactured within the U.S.
The identical day, Nvidia introduced that it has already began manufacturing of its Blackwell chips at TSMC’s Arizona crops. It plans to provide as much as half a trillion {dollars} of AI infrastructure within the U.S. over the subsequent 4 years by means of companions, together with TSMC.
Taiwan-listed shares of TSMC fell almost 1%. Shares have misplaced over 20% thus far this 12 months.
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