On Thursday, Taiwan Semiconductor Manufacturing Co (TSMC), the leading producer of contract chips globally, reported a 42% increase in its first-quarter revenue, slightly surpassing market expectations fueled by the surge in artificial intelligence (AI).
For the January to March period, TSMC posted revenue of T$839.3 billion ($25.6 billion), according to a brief company update. This figure edged past an LSEG SmartEstimate, which averaged T$835.7 billion from 19 analysts, and aligned with the company’s forecast range of $25 billion to $25.8 billion.
The company indicated in February that revenue might be at the lower end of that spectrum due to a $161 million impact from a January earthquake in Taiwan.
TSMC plans to release its comprehensive first-quarter earnings on April 17, including projections for the ongoing quarter and the full year. The giant chipmaker, which counts Apple and Nvidia among its clients, has significantly benefited from AI advancements, which have more than compensated for reduced demand in consumer electronics like tablets post-pandemic.
Meanwhile, TSMC’s shares have tumbled since U.S. President Donald Trump announced sweeping import tariffs last week, although semiconductors have, so far, been excluded.
However, following Trump’s recent announcement of a pause in tariffs, TSMC’s Taipei-listed shares surged 9.9% on Thursday, while the price has experienced a 19.7% decline this year, mirroring the broader index’s 17.5% drop.
Prior to the revenue update, Donald Trump has previously pressed TSMC to ramp up its U.S. operations or face a potential tax of up to 100%.
This pronouncement came during an event for the Republican National Congressional Committee, where Trump blasted the previous administration for awarding a $6.6 billion grant to TSMC’s American development in Phoenix, arguing that semiconductor giants are self-sufficient and need no monetary aid.
