Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, has reported a fourth consecutive quarter of record profits. Driven by robust artificial intelligence chip demand, the company's first-quarter net profit soared 58.3% year-over-year to NT$572.48 billion.
Revenue also saw a significant increase of 35.1%, reaching NT$1.13 trillion, surpassing market forecasts. Executives highlighted strong demand for leading-edge process technologies, with nearly three-quarters of wafer revenue coming from advanced chips at 7-nanometre and below.
TSMC has raised its full-year guidance, projecting second-quarter revenue between $39 billion and $40.2 billion. Analysts noted that while rising memory prices could impact consumer electronics, AI demand is expected to offset these concerns.
The company acknowledged potential headwinds from geopolitical tensions, particularly in the Middle East, which could affect input costs for chemicals and gases. However, TSMC stated there will be no immediate disruption to operations due to diversified sourcing and maintained safety stock inventories. The chipmaker is actively working to strengthen its supply chain resilience and mitigate potential impacts on profitability.