On April 16, 2025, the headquarters of Taiwan Semiconductor Manufacturing Company (TSMC) in Hsinchu, Taiwan.
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Taiwan Semiconductor Manufacturing Company on Thursday Profit Expectationsthanks to the continuous surge in demand for AI chips.
Here are the TSMC’s first quarter results and estimates of the LSEG consensus:
- Revenue: $839.250 million in new Taiwanese dollars, vs.
- Net profit: NT36.156 billion, vs. $35.414 billion
TSMC’s net income rose 60.3% from the same period last year, with net revenues increasing 41.6% to $83,9250 million for the March quarter.
TSMC’s High-performance computing The division, which includes artificial intelligence and 5G applications, accelerated quarterly revenue, accounting for 59% of total revenue, up 7% from the previous quarter.
Meanwhile, the company said advanced technology, defined as below 7 nanometers, accounts for 73% of total wafer revenue. In semiconductor technology, smaller nanometer sizes mean more compact transistor designs, increasing processing power and efficiency.
“Four-quarter businesses were affected by the seasonality of smartphones, partially offset by the continued growth of AI-related demand,” TSMC CEO CC Wei said in a revenue call.
“We expect our business to be supported by strong growth in 3- and 5-nanometer technology as we move into the second quarter of 2025,” he added.
As the world’s largest contracted chip maker, TSMC benefits from AI Boom and produces advanced processors for clients such as American chip designer Nvidia.
However, the company faces potential headwinds from the trade policy of President Donald Trump, who placed a wide range of trade tariffs in Taiwan and held stricter export controls with TSMC client nvidia. AMD.
Semiconductor export controls can also be extended under “” next month.AI spreading rules“It will further limit sales of chip makers that were originally proposed by the Biden administration and use TSMC Foundry.
On the tariff front, Taiwan is currently facing 10% collection from the Trump administration, potentially rising to 32% after the president’s “mutual tariffs” 90-day suspension ends unless it reaches a deal with the US.
“We understand that there is uncertainty and risk from the potential impact of tariff policy,” Wei noted that the company has not yet seen a change in customer behavior.
Therefore, TSMC maintains its forecast for revenue growth of nearly 20% in 2025 during the ongoing AI development.
As part of its efforts to diversify its supply chain, TSMC has invested billions in overseas facilities, but its manufacturing lion share remains in Taiwan.
In an obvious response to Trump’s trade policy, TSMC announced last month it plans to invest $1100 billion in the US, in addition to the $65 billion it committed to three US factories.
However, in a call to revenue, Wei dispelled reports that the company is debating its discussion about joining a joint venture that operates the factory of US chipmaker Intel.
“TSMC is not engaged in discussions with other companies regarding joint ventures, technology licensing or technology,” he said.
On Monday, AMD said it would soon be Manufacture processor chips One of the new Arizona-based TSMC facilities marks its chips being the first to be manufactured in the US
On the same day, Nvidia announced that she already owned it. Blackwell chip production has begun With TSMC’s Arizona plant. Through partners including TSMC, the company plans to produce up to $50 trillion in AI infrastructure in the US over the next four years.
TSMC’s Taiwan listed stocks fell nearly 1%. Stocks have fallen by more than 20% so far this year.
