Taiwan Semiconductor Manufacturing Firm (TSMC) headquarters in Hsinchu, Taiwan, on April 16, 2025.
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Taiwan Semiconductor Manufacturing Firm on Thursday maintained its annual income forecast after it quarterly beat revenue expectations, because of 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 earnings: NT$361.56 billion, vs. NT$354.14 billion
TSMC’s internet earnings elevated 60.3% from the identical interval final yr to NT$361.56 billion, whereas internet income within the March quarter rose 41.6% to NT$839.25 billion.
TSMC’s high-performance computing division which encompasses synthetic intelligence and 5G functions drove gross sales within the quarter, growing 7% because the final quarter to account for 59% of complete income.
In the meantime, the corporate stated superior applied sciences, outlined as 7-nanometer and fewer, accounted for 73% of complete wafer income. In semiconductor expertise, smaller nanometer sizes signify extra compact transistor designs, which result in larger processing energy and effectivity.
“Enterprise within the fourth quarter was impacted by smartphone seasonality, partially offset by continued development in AI associated demand,” TSMC CEO C.C. Wei stated in an earnings name.
“Shifting into the second quarter of 2025, we anticipate our enterprise to be supported by sturdy development of our 3-nanometer and 5-nanometer applied sciences,” he added.
Because the world’s largest contract chip producer, TSMC has persistently benefited from the AI increase because it produces superior processors for purchasers such American chip designer Nvidia.
Nonetheless, the corporate faces potential 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 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.
On the tariff entrance, Taiwan at the moment faces a blanket 10% levy 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 cope with the U.S.
“We perceive there are uncertainties and dangers from the potential influence of tariff insurance policies,” Wei stated, noting, nevertheless, that the corporate has but to see any adjustments in buyer habits.
Subsequently, TSMC has maintained its forecast of near mid-20% income development in 2025 amidst continued AI growth.
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 commerce coverage, TSMC final month introduced plans to take a position an extra $100 billion within the U.S. on prime of the $65 billion it has dedicated to 3 crops within the U.S.
Nonetheless, on the earnings name, Wei dispelled stories that the corporate is in discussions about getting into a three way partnership that may function factories of U.S. chipmaker Intel.
“TSMC isn’t engaged in any dialogue with different corporations concerning any three way partnership, expertise licensing or expertise,” he stated.
On Monday, AMD stated it could quickly manufacture processor chips at one of many new Arizona-based TSMC amenities, marking the primary time that its chips might 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 supply as much as half a trillion {dollars} of AI infrastructure within the U.S. over the following 4 years by companions, together with TSMC.
Taiwan-listed shares of TSMC fell almost 1%. Shares have misplaced over 20% to this point this yr.
