Prime Highlights-
- TSMC reported a 58% rise in net profit, marking its fourth consecutive quarter of record earnings.
- Strong demand for advanced chips from major clients like Apple and Nvidia drove overall performance.
Key Facts-
- Quarterly revenue stood at NT$1.134 trillion, above market expectations.
- The high-performance computing division contributed 61% of total revenue, led by advanced chip demand.
Background-
Taiwan Semiconductor Manufacturing Company posted strong first-quarter results in April, fuelled by growing demand for advanced chips. Net profit jumped 58%, the fourth straight quarter of record earnings, cementing the company’s position in the global semiconductor sector.
Quarterly revenue totalled NT$1.134 trillion, above market estimates of NT$1.127 trillion. Net income reached NT$572.48 billion, also surpassing forecasts. The company earlier recorded a 35% year-on-year rise in quarterly revenue, showing steady expansion across operations.
TSMC said demand for advanced semiconductors remained strong, supported by major clients including Apple and Nvidia. The company continues to benefit from rising adoption of advanced computing technologies, which is driving higher computing needs across industries.
Chief executive C.C. Wei said demand for AI-related workloads remains extremely strong and continues to increase global computing requirements. He added that customer signals point to sustained multi-year growth in the semiconductor market.
The company forecast more than 30% revenue growth in U.S. dollar terms for the full year, reflecting strong business visibility. It also projected second-quarter revenue between $39 billion and $40.2 billion, indicating steady sequential growth.
TSMC said its high-performance computing division brought in 61% of total revenue, with advanced chips making up nearly three-quarters of wafer sales. The company is building a new advanced chip plant in Tainan, Taiwan, to keep pace with growing global demand.
The firm also confirmed increased capital expenditure plans, aligning with its long-term expansion strategy to strengthen semiconductor production capabilities worldwide.
