Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) quarterly revenue rose a larger-than-anticipated 41.6 percent from a year earlier, reflecting strengthening demand for artificial intelligence (AI) servers and smartphones before US tariffs kicked in.
That marked TSMC’s fastest pace of growth since 2022. Electronics manufacturers had stockpiled goods in US warehouses in anticipation of potential trade and shipping disruptions.
The main chipmaker for Apple Inc and Nvidia Corp yesterday reported revenue of NT$839.25 billion (US$25.5 billion) in the first three months of this year. Analysts on average expected roughly NT$830.5 billion.
Photo: CNA
Last month alone, TSMC’s revenue was NT$285.96 billion, up 46.5 percent from a year earlier and a record high in the company’s history.
The company is to report full quarterly earnings on Thursday next week, along with its outlook for the current quarter.
US President Donald Trump’s 90-day pause on higher tariffs might mean more stockpiling in the months ahead, shoring up TSMC’s June quarter, according to Bernstein analysts led by Mark Li.
“We think AI demand, despite some recent noises, will still grow notably year-on-year,” they said in a note to investors.
Shares of TSMC closed up 9.94 percent in Taipei trading yesterday.
TSMC’s results coincide with growing concerns about how tariffs may disrupt demand for electronics such as iPhones. Over the weekend, Americans rushed to pick up Apple’s marquee device, fearing it may raise prices to cover the additional cost.
Some analysts said TSMC might have to cut its full-year revenue target for growth in the mid-20 percent range, reflecting global uncertainty and the potential hit to economies. The company’s outlook is overshadowed also by Trump’s threats to slap tariffs on semiconductor imports, although it is unclear when or whether that might happen.
Still, TSMC remains the world’s leader in the production of advanced semiconductors used for AI devices and smartphones. That could cushion the impact of tariffs or trade disruptions.
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