TSMC profits climb 58% on persistent AI demand
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The news: Taiwan Semiconductor Manufacturing Company (TSMC) reported a 58% surge in profits for the first quarter, hitting a fresh record as global demand for AI chips continued into 2026.
The numbers: TSMC’s net income for the period jumped to TW$572.5 billion ($25.28 billion), ahead of analysts forecasts, while revenue in the first three months of the year reached TW$1,134.1 billion, a 35% increase.
The company lifted its 2026 outlook, noting that it expects revenue growth of over 30%, coming in between USD39 billion and USD40.2 billion, while its capital spending is expected to come in toward the higher end of a USD52 billion to USD56 billion range.
The context: TSMC, the main chipmaker supplying Nvidia and Apple, is the largest tech company by market capitalisation in Asia, having maintained strong demand for its advanced semiconductors from its core clients.
Despite concerns about supply chain disruptions brought about by the war in the Middle East, TSMC executives said during Thursday’s earnings call the company does not anticipate near-term impacts on its operations from the disruptions.
What they said: “Our business in the first quarter was supported by strong demand for our leading-edge process technologies,” said Wendell Huang, senior VP and CFO of TSMC in a statement on the results. “Moving into second quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies.”
The sources: TSMC earnings release, TSMC financials, Bloomberg, CNBC, FT
