TSMC Reports Record First-Quarter Net Profit of NT$572.5 Billion Despite Iran War

Net Profit Surges 58.3% Year-on-Year
Optimistic Outlook for Q2 Revenue
Annual Revenue Expected to Grow 30% This Year

TSMC. Reuters Yonhap News

Taiwan's TSMC posted record-high net profit in the first quarter of this year, driven by the artificial intelligence (AI) boom despite the ongoing war involving Iran. The company projected that short-term supply chain disruptions would be limited and forecast annual revenue growth of over 30% for this year.

According to Bloomberg and other sources on April 16 (local time), TSMC announced in its earnings release that its net profit for the first quarter reached NT$572.5 billion (approximately KRW 26.7 trillion), a 58.3% increase year-on-year. This figure exceeded Bloomberg's market consensus estimate of NT$542.4 billion (about KRW 25.3 trillion).

Previously, TSMC reported that March sales grew 45.2% year-on-year to NT$415.19 billion (approximately KRW 19.3 trillion), while first-quarter sales increased 35.1% year-on-year to NT$1.1341 trillion (about KRW 52.9 trillion), both marking monthly and quarterly record highs, respectively.

In the first quarter, 3-nanometer, 5-nanometer, and 7-nanometer process nodes accounted for 25%, 36%, and 13% of revenue, respectively, with advanced nodes making up 74% of total sales, significantly contributing to the net profit increase. TSMC is placing greater emphasis on the 3-nanometer process used in smartphones and AI products, while expanding its production facilities in Taiwan, the United States, and Japan. Bloomberg noted that, even after the outbreak of war at the end of February, the investment boom in AI has not waned.

TSMC offered an optimistic outlook for second-quarter revenue, projecting US$39 billion to US$40.2 billion (about KRW 57.5 trillion to KRW 59.2 trillion). TSMC Chairman Mark Liu said, "The current situation in the Middle East is increasing macroeconomic uncertainty, so we are making our business plans cautiously. However, demand related to AI remains very strong." He added, "We maintain a strong conviction that our revenue in US dollar terms will increase by more than 30% this year."

This content was produced with the assistance of AI translation services.