Prime Highlights
- TSMC is on track to deliver its fourth consecutive quarter of record-breaking profit, driven by booming demand for AI infrastructure.
- Strong uptake of 3-nanometre chips and advanced packaging services continues to outpace supply, reinforcing its leadership in AI chip manufacturing.
Key Facts
- The company is expected to post a net profit of T$542.6 billion ($17.1 billion) for the January–March quarter, according to analyst estimates.
- TSMC’s market capitalisation has climbed to nearly $1.6 trillion, making it almost twice the size of Samsung Electronics.
Background
Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest maker of advanced artificial intelligence chips, is expected to post its fourth consecutive quarter of record profit as demand for AI infrastructure continues to rise sharply.
The company is likely to report a net profit of T$542.6 billion ($17.1 billion) for the January–March quarter, according to an LSEG SmartEstimate based on forecasts from 19 analysts. If the profit crosses T$505.7 billion, it will mark the company’s highest-ever quarterly net income and extend its profit growth streak to nine straight quarters.
Analysts say demand for TSMC’s 3-nanometre chip technology, widely used in AI processors, remains stronger than its current production capacity. The company is also seeing heavy demand for its advanced chip packaging services, which are critical for high-performance AI computing.
TSMC, a major supplier to Nvidia and Apple, has strengthened its market position, with its market capitalisation now reaching nearly $1.6 trillion. It is almost double the size of South Korean rival Samsung Electronics.
Last week, TSMC reported a 35% year-on-year rise in first-quarter revenue, beating market expectations. Analysts now expect the company to issue stronger second-quarter revenue guidance, supported by steady AI demand and its lead in advanced chipmaking.
Geopolitical risks, like tensions in the Middle East, could disrupt supplies of important semiconductor gases such as helium and neon. However, experts believe TSMC can handle short-term challenges because it gets supplies from different sources and keeps extra stock.
TSMC shares have risen 28% this year, outperforming Taiwan’s broader market, which is up 22%.
