A motorbike is seen near a constructing of the Taiwan Semiconductor Manufacturing Company (TSMC), which is a Taiwanese multinational semiconductor contract manufacturing and design company, in Hsinchu, Taiwan, on April 16, 2025.
Daniel Ceng | Anadolu | Getty Images
Taiwan Semiconductor Manufacturing Company on Thursday beat profit expectations for the primary quarter, due to a continued surge in demand for AI chips.
Listed here are TSMC’s first-quarter results versus LSEG consensus estimates:
- Revenue: $839.25 billion Recent Taiwan dollars, vs. NT$835.13 billion expected
- Net income: NT$361.56 billion, vs. NT$354.14 billionÂ
TSMC’s reported net income increased 60.3% from a yr ago to NT$361.56 billion, while net revenue within the March quarter rose 41.6% from a yr earlier to NT$839.25 billion.
The world’s largest contract chip manufacturer has benefited from the AI boom because it produces advanced processors for clients such American chip designer Nvidia.
Nevertheless, the corporate faces headwinds from the trade policy of U.S. President Donald Trump, who has placed broad trade tariffs on Taiwan and stricter export controls on TSMC clients Nvidia and AMD.
Semiconductor export controls is also expanded next month under the “AI diffusion rules” first proposed by the Biden administration, further restricting the sales of chipmakers that use TSMC foundries.
Taiwan currently faces a blanket 10% tariff from the Trump administration and that would rise to 32% after the President’s 90-day pause of his “reciprocal tariffs” ends unless it reaches a take care of the U.S.
As a part of efforts to diversify its supply chains, TSMC has been investing billions in overseas facilities, though the lion’s share of its manufacturing stays in Taiwan.
In an apparent response to Trump’s trade policy, TSMC last month announced plans to take a position a further $100 billion within the U.S. on top of the $65 billion it has committed to a few plants within the U.S.
On Monday, AMD said it could soon manufacture processor chips at one in every of the brand new Arizona-based TSMC facilities, marking the primary time that its chips can be manufactured within the U.S.
The identical day, Nvidia announced that it has already began production of its Blackwell chips at TSMC’s Arizona plants. It plans to provide as much as half a trillion dollars of AI infrastructure within the U.S. over the subsequent 4 years through partners, including TSMC.
Taiwan-listed shares of TSMC were down about 0.4%. Shares have lost about 20% to date this yr.
