Taiwan-based semiconductor giant Taiwan Semiconductor Manufacturing Company reported a fourth consecutive quarter of record profits on Thursday, driven by strong global demand for artificial intelligence chips and steady orders from major technology clients.
The world’s largest contract chipmaker said first-quarter net profit jumped 58.3 percent year-on-year to NT$572.48 billion ($18.11 billion), surpassing analyst expectations. Revenue also rose sharply, climbing 35.1 percent to NT$1.13 trillion, reflecting continued growth in advanced chip manufacturing.
Company chairman and chief executive C. C. Wei said demand linked to artificial intelligence remained a key driver of performance. He noted that orders for high-end chips used in AI systems continue to grow at a rapid pace, supporting both revenue and profitability.
TSMC’s margins remained strong during the quarter, with gross margin reaching 66.2 percent and net profit margin standing at 50.5 percent. Advanced technologies, defined as chips built on 7-nanometre processes and below, accounted for nearly three-quarters of total wafer revenue.
The company’s customer base includes leading global firms such as Apple and Nvidia, both of which have increased their reliance on high-performance chips to power devices and AI applications.
Chief financial officer Wendell Huang said strong demand for cutting-edge manufacturing processes had supported first-quarter results and is expected to continue into the next quarter. TSMC forecast second-quarter revenue between $39 billion and $40.2 billion, up from $35.9 billion in the first quarter.
Analysts say the continued expansion of AI infrastructure is helping offset potential weakness in other areas, including consumer electronics. Ben Barringer of Quilter Cheviot noted that while high memory prices could dampen demand for some devices, the surge in AI-related spending is likely to sustain growth.
Despite the positive outlook, TSMC flagged potential risks linked to geopolitical tensions. The company warned that rising costs for key materials, including chemicals and industrial gases, could affect profitability in the coming months. Wei said it was too early to determine the full financial impact.
TSMC added that it does not expect immediate disruption to its operations, citing a diversified supply chain and sufficient inventory of essential materials such as helium and hydrogen. The company has also been working to expand its supplier network to improve resilience against future shocks.
With demand for advanced chips continuing to rise, TSMC remains central to the global semiconductor industry, even as it navigates cost pressures and an increasingly complex geopolitical environment.
