Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s leading contract chipmaker, reported a 60% increase in net profit for the first quarter of 2025, surpassing market expectations. The company earned T$361.6 billion ($11.12 billion) in net profit from January to March, up from T$225.5 billion during the same period in 2024. The results exceeded the T$354.6 billion forecast from LSEG SmartEstimate, which relies on consistently accurate analysts.
The surge in profit is attributed to strong demand for semiconductors driven by growth in artificial intelligence applications. TSMC supplies major clients like Apple and Nvidia. The robust performance underscores the continued momentum in the semiconductor industry, particularly in the AI sector.
Despite the strong financial performance, TSMC faces risks from U.S. President Donald Trump’s trade policies, including threats of substantial tariffs on companies not building factories in the U.S. While TSMC has committed $100 billion for U.S. investment, including $65 billion for plants in Arizona, the bulk of its manufacturing will remain in Taiwan. The Trump administration is also considering tariffs on chip and pharmaceutical imports, citing national security concerns.
TSMC recently beat Q1 revenue expectations but its stock has declined 20% in 2025 due to trade uncertainties. The company plans to provide updates on its revenue outlook and capital expenditure, which could reach as high as $42 billion this year, during its upcoming earnings call.
