Taiwan Semiconductor Manufacturing Co (TSMC) delivered a blockbuster earnings performance, with first-quarter profit jumping 58% year-on-year to a record high, comfortably beating market expectations as artificial intelligence demand continues to supercharge semiconductor growth.
Reuters reported TSMC’s net profit for January-March rose to T$572.5 billion (US$18.2 billion), marking the company’s eighth consecutive quarter of double-digit growth and surpassing analyst estimates of T$543.3 billion.
The world’s leading producer of advanced artificial intelligence (AI) chips and key supplier to Nvidia Corporation and Apple Inc continues to ride an unprecedented wave of demand for high-performance computing, particularly its cutting-edge 3nm process technology and advanced chip packaging solutions.
TSMC’s most advanced nodes are now operating beyond capacity, with 3nm chips accounting for roughly a quarter of total revenue, up sharply from just 6% in late 2023, highlighting the rapid commercialisation of AI workloads across global tech ecosystems.
The earnings surge further cements TSMC’s dominance as Asia’s most valuable technology company, with its market capitalisation approaching twice that of rival Samsung Electronics.
Despite geopolitical risks, including potential supply disruptions from escalating tensions in the Middle East, analysts say TSMC remains structurally insulated due to its technological lead and diversified manufacturing footprint.
Investor focus is now turning to the company’s capital expenditure outlook, with current plans ranging between US$52 billion and US$56 billion for 2025, alongside its massive US$165 billion investment in Arizona and revised advanced-node expansion in Japan.
