The rising demand for artificial intelligence chips drives strong quarterly growth, reinforcing TSMC’s leadership in advanced semiconductor manufacturing.
Taiwan Semiconductor Manufacturing Company (Taiwan Semiconductor Manufacturing Company), the world’s largest contract chipmaker, reported robust first-quarter revenue driven by accelerating global demand for artificial intelligence (AI) technologies.
The company announced revenue of T$1.134 trillion (about $35.71 billion) for the January–March period, marking a 35% year-on-year increase compared with T$839.3 billion recorded during the same quarter last year. The figure exceeded analysts’ expectations, slightly beating market estimates compiled by LSEG and aligning with the company’s earlier guidance range of $34.6 billion to $35.8 billion.
While the preliminary statement provided limited operational details, the strong performance highlights how AI adoption is reshaping the semiconductor industry. Growing demand for advanced processors used in data centres and AI computing has helped offset weakening sales in traditional consumer electronics segments such as tablets and smartphones, which experienced slower momentum after the pandemic-era boom.
TSMC remains a critical manufacturing partner for major technology companies, including AI chip leader Nvidia. The surge in AI infrastructure spending worldwide has significantly boosted orders for advanced semiconductor fabrication services, reinforcing TSMC’s dominant position in cutting-edge chip production.
Investor confidence has reflected this momentum. Shares of TSMC listed in Taipei have climbed roughly 29% so far this year, outperforming the broader market benchmark, which has gained about 22%. The stock ended Friday’s trading session up 2.3%.
The broader AI supply chain is also witnessing strong growth. Electronics manufacturing giant Foxconn, known as the world’s largest contract electronics manufacturer and a key server supplier for Nvidia, recently reported a 30% annual increase in its first-quarter revenue.
TSMC is scheduled to release its full earnings report on April 16, when investors will look for updated guidance on second-quarter performance and the company’s outlook for the remainder of the year.
