Apple Silicon supplier TSMC, the world’s largest contract chipmaker, posted a 58% jump in first-quarter net profit on Thursday, beating market forecasts and hitting a record, as it benefits from huge appetite globally for its artificial intelligence processors.
Taiwan Semiconductor Manufacturing Co., whose customers also include Nvidia, saw January-March net profit rise to T$572.5 billion ($18.2 billion).
This performance represents TSMC’s eighth consecutive quarter of double-digit profit growth, driven primarily by surging global demand for advanced artificial intelligence processors and high-performance computing chips.
Revenue for the January-March period reached T$1.134 trillion (about $35.7 billion), reflecting a 35% year-over-year rise and beating market forecasts. March alone saw revenue jump 45.2% compared to the prior year. Advanced process nodes (7nm and smaller) accounted for roughly 74% of wafer revenue, underscoring TSMC’s strength in cutting-edge manufacturing. Major clients, including Apple (for its M-series and A-series chips) and Nvidia (for AI accelerators), contributed to the strong results as demand for AI infrastructure continued to outpace supply.
The impressive earnings highlight TSMC’s central role in the ongoing AI boom and its importance to Apple’s Silicon strategy. With capacity utilization high and advanced technologies in strong demand, TSMC has raised its full-year 2026 revenue outlook and increased capital expenditure guidance to $52-56 billion to expand production. Analysts expect the momentum to persist, though geopolitical factors remain a watchpoint for the semiconductor supply chain.
MacDailyNews Take: Bodes well for Apple.
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