HONG KONG (AP) 鈥� Taiwan鈥檚 chipmaker TSMC, one of the world鈥檚 largest companies, reported a 58% jump in profit on Thursday for the January-March quarter, thanks to strong demand driven by the artificial intelligence boom even as the was driving up costs.
Taiwan Semiconductor Manufacturing Corp., a key supplier for Apple and Nvidia and the largest contract chipmaker in the world, reported a record net quarterly profit of 572.5 billion new Taiwan dollars ($18.1 billion) for the first three months of the year, better than analysts had expected.
Profit for the quarter was 58.3% higher compared to the 361.6 billion new Taiwan dollars ($11.5 billion) booked the same period a year earlier. It was also 13.2% higher compared with the previous quarter in October-December.
Revenue increased 8.4% in the January-March period from the previous three months to $35.9 billion, the company said. For the current April-June quarter, TSMC expected revenue to further grow to between $39 billion and $40.2 billion.
As demand continues to surge, TSMC has been expanding chip fabrication plants in the U.S., and Taiwan, with a focus on making more advanced 3-nanometer semiconductors that are used in smartphones and AI products.
鈥淎I-related demand continues to be extremely robust,鈥� C.C. Wei, TSMC鈥檚 CEO and chairman, told an earnings conference on Thursday. 鈥淥ur conviction in the multi-year AI megatrend remains high, and we believe the demand for semiconductors will continue to be very fundamental.鈥�
TSMC also warned of potential impacts from the Iran war, which has not only pushed up global supply chain costs but is also disrupting the world鈥檚 essential for chipmaking.
Wendell Huang, TSMC鈥檚 chief financial officer, said while rising costs stemming from the Iran war could weigh on profitability, the company has 鈥減repared safety stock inventory on hand鈥� including for helium and is not expecting 鈥渁ny near-term impact” on operations.
TSMC has pledged huge investments in expanding its manufacturing capacity in Taiwan and abroad, including $165 billion of commitments in . The company said Thursday its capital spending for the next three years will be 鈥渟ignificantly higher鈥� than the past three years as it ramps up capacity to meet customers鈥� growing demand.
The chipmaker had earlier announced plans to raise its capital expenditure budget to $52 billion-$56 billion for this year from about $40 billion in 2025. It said Thursday it now expects capital spending in 2026 to be toward the higher end of that.
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