TSMC likely to book fourth straight quarter of record profit on insatiable AI demand
* Net profit is expected to increase by 50% in the first quarter
* TSMC benefits from the AI boom more than other chip foundries
* First quarter revenue increased by 35%
* Winnings will be announced on Thursday at 06:00 GMT
Wen-Yee Lee and Ben Blanchard
TAIPEI, April 13 (Reuters) – TSMC, the world’s largest maker of advanced AI chips, is likely to post record earnings for the fourth consecutive quarter, with a 50% jump in net profit from January to March, thanks to rising demand for AI infrastructure.
Analysts say demand for Taiwan Semiconductor Manufacturing Co’s 3-nanometer technology and advanced packaging technology to produce AI chips continues to exceed the firm’s current production capacity.
This has taken Asia’s most valuable company, a key supplier to Nvidia and Apple, to new heights. Its market capitalization is currently around $1.6 trillion, almost twice that of South Korean rival Samsung Electronics.
On Thursday, TSMC is expected to report net profit of T$542.6 billion ($17.1 billion) for the quarter, according to the LSEG SmartEstimate compiled from 19 analysts. SmartEstimates gives greater weight to forecasts from analysts who are more consistently accurate.
The earnings announcement, which will provide second-quarter and updated full-year guidance, is scheduled for 06:00 GMT.
Any profit result above T$505.7 billion would mark the company’s highest-ever quarterly net income and ninth consecutive quarter of profit growth.
Last week saw a 35% increase in first-quarter revenue, ahead of market forecasts.
Looking ahead, “for the second quarter of 2026, we expect higher quarter-on-quarter revenue growth, driven by sustained AI demand and improved node leadership,” Arthur Lai, Macquarie Capital’s head of Asia technology research, said in a note to clients.
The war in the Middle East threatens to disrupt supplies of manufacturing materials for semiconductors such as helium and neon, but TSMC appears well positioned to weather the crisis.
“TSMC’s diversified sourcing and safety stock should be sufficient to manage short-term outages,” said Galen Zeng, senior research manager at IDC.
Zeng said one focus will be on whether TSMC will maintain or increase its 2026 capital spending plans, reflecting management’s confidence in long-term AI demand.
TSMC is investing $165 billion to establish chip factories in the US state of Arizona.
The company has also revised its plans in Japan and is now preparing to produce 3-nanometer chips there rather than focusing on more mature nodes.
TSMC’s Taipei-listed shares are up 28% so far this year, outpacing the 22% rise in the broader market. ($1 = 31.7730 Taiwan dollars) (Reporting by Wen-Yee Lee and Ben Blanchard; Editing by Edwina Gibbs)
