Taiwan Semiconductor Manufacturing Company (TSMC) on Thursday, April 17, maintained its annual revenue forecast after its profit for the last quarter exceeded preliminary expectations and became evidence that global consumer demand for artificial intelligence chips continues.
The mentioned firm’s revenue for the first quarter of the current year was recorded at $839.25 billion in the New Taiwan dollars mark. It is worth clarifying that currently, 1 New Taiwan dollar is equivalent to 0.031 US dollars. The company’s revenue for the first quarter of 2025 showed growth of 41.6% year-on-year. The consensus forecast of analysts surveyed by LSEG predicted that TSMC’s revenue for the mentioned period would be fixed at the NT$835.13 billion mark.
The company’s net income for the first quarter of 2025 amounted to NT$361.56 billion. This figure increased by 60.3% compared to the reading for the same period last year. The consensus forecast of analysts surveyed by LSEG predicted that the company’s net income for the first quarter of 2025 would be NT$354.14 billion.
TSMC’s revenue from high-performance computing unit activity, which encompasses artificial intelligence and 5G apps, grew by 7% in January-March of the current year compared to the previous quarter and accounted for 59% of total revenue.
The company also reported that its advanced technologies-related operations, which include 7-nanometer and less chips, accounted for 73% of total wafer revenue for the first quarter of 2025. It is worth noting that in semiconductor technologies, smaller nanometer sizes signify more compact transistor designs, which leads to greater processing power and efficiency.
TSMC chief executive officer C.C. Wei said in an earnings call that the business in the fourth quarter of 2024 was impacted by smartphone seasonality, partly offset by continued growth in artificial intelligence-related demand. He stated that moving into the second quarter of 2025, the company expects its business to be supported by strong growth of its 3-nanometer and 5-nanometer technologies.
TSMC is currently the world’s largest contract manufacturer of chips. The company is one of the beneficiaries of the so-called artificial intelligence boom. Chips are necessary for training and ensuring the process of subsequent functioning of machine intelligence systems. TSMC manufactures advanced processors for customers such as Nvidia, the United States-based developer of cutting-edge microcircuits.
At the same time, the company is currently facing not the best prospects. The tightening of the trade policy of the United States, which provides for an increase in tariffs on imported goods, may mean significant financial losses for TSMC. The mentioned measures relate, among other things, to Taiwan. The United States has also tightened export controls for TSMC customers, including, in addition to Nvidia, AMD, another US chip developer.
It is worth noting that the mentioned control measures may be expanded next month. Washington, according to media reports, has the appropriate intentions.
Currently, Taiwan is subject to 10% US tariffs. At the same time, the administration of the President of the United States, Donald Trump, initially imposed 32% levies on imports of Taiwanese goods. Some time later, Mr. Trump announced a 90-day pause in tariff increases. There is a high probability that Taiwan will eventually face 32% US levies. However, a negative scenario is not inevitable. Potentially, Taiwan and the United States can reach an agreement on easing the terms of trade cooperation. At the same time, this is only a possibility, not a guaranteed reality of the future.
C.C. Wei stated that TSMC understands that there are uncertainties and risks associated with the potential impact of tariff policies. At the same time, he noted that the company has not yet recorded any changes in customer behavior.
TSMC maintained its forecast that the chip manufacturer’s revenue will grow by almost 20% in the current year. The company identifies the ongoing development of artificial intelligence as the main factor in this upward process.
As part of its efforts to diversify supply chains, TSMC is investing in overseas facilities. At the same time, most of the company’s production lines are still based in Taiwan. Last month, TSMC announced plans for an additional $100 billion investment in the United States. These funds are in addition to the originally announced $65 billion. TSMC is involved in projects to build three plants in the United States.
Despite the fact that the chip manufacturer is demonstrating steady positive financial results, the value of its shares has fallen by more than 20% since the beginning of the current year.
As we have reported earlier, TSMC Breaks Ground on €10 Billion German Plant.
