Taiwan Semiconductor Manufacturing Firm (TSMC) headquarters in Hsinchu, Taiwan, on April 16, 2025.
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Taiwan Semiconductor Manufacturing Firm on Thursday beat revenue expectations for the primary quarter, because of a continued surge in demand for AI chips.
Listed here are TSMC’s first-quarter outcomes versus LSEG consensus estimates:
- Income: $839.25 billion New Taiwan {dollars}, vs. NT$835.13 billion anticipated
- Internet earnings: NT$361.56 billion, vs. NT$354.14 billion
TSMC’s internet earnings elevated 60.3% from the identical interval final 12 months to NT$361.56 billion, whereas internet 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 whole wafer income, the corporate stated.
The world’s largest contract chip producer has benefited from the AI increase because it produces superior processors for shoppers such American chip designer Nvidia.
Nevertheless, the corporate faces headwinds from the commerce coverage of U.S. President Donald Trump, who has positioned broad commerce tariffs on Taiwan and stricter export controls on TSMC shoppers Nvidia and AMD.
Semiconductor export controls is also 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 the moment faces a blanket 10% tariff from the Trump administration and that might rise to 32% after the President’s 90-day pause of his “reciprocal tariffs” ends except it reaches a take care of the U.S.
As a part of efforts to diversify its provide chains, TSMC has been investing billions in abroad services, although the lion’s share of its manufacturing stays in Taiwan.
In an obvious response to Trump’s commerce coverage, TSMC final month introduced plans to speculate an extra $100 billion within the U.S. on prime of the $65 billion it has dedicated to 3 vegetation within the U.S.
On Monday, AMD stated it will quickly manufacture processor chips at one of many new Arizona-based TSMC services, marking the primary time that its chips will likely 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 vegetation. It plans to provide as much as half a trillion {dollars} of AI infrastructure within the U.S. over the following 4 years by way of companions, together with TSMC.
Taiwan-listed shares of TSMC fell almost 1%. Shares have misplaced over 20% up to now this 12 months.
