Taiwan Semiconductor Manufacturing Company (TSMC) Headquarters in Hsinchu, Taiwan, April 16, 2025.
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The Taiwan semiconductor manufacturing company in Thorsday maintained its annual income prognosis after its quarterly gain executions, thanks to a continuous increase in the demand of AI chips.
Here are the results of the first trimester of TSMC versus LSEG’s consensus estimates:
- Income: $ 839.25 billion New Taiwan Dollars, USA
- Net income: NT $ 361.56 billion, vs. NT $ 354.14 billion
The net income of TSMCS increased 60.3% from the same period last year to NT $ 361.56 billion, while the net income in the quarter of March increased 41.6% to NT $ 839.25 billion.
The TSMC high performance computing division entrusted to artificial intelligence and 5G applications promoted sales in the quarter, increasing 7% since the last quarter to represent 59% of total income.
Meanwhile, the company said that advanced technologies, defined as 7 nanometers and less, represented 73% of the total income of the wafer. In semiconductor technology, narrower nanometer sizes mean more compact transist designs, which leads to greater power and processing efficiency.
“Businesses in the fourth quarter were affected by the seasonality of smartphones, partially compensated by the continuous growth of the demand related to AI,” said the CEO of TSMC, CC Wei, in a gain call.
“Going to the second quarter of 2025, we hope that our business will be backed by a strong growth of our 3 nanometers and 5 nanometers technologies,” Hey added.
As the world’s largest contract chips manufacturer, TSMC has constantly benefited from AI, since it produces advanced processors for customers such as the American chip designer Nvidia.
However, the company faces potential winds against the commercial policy of the president of the United States, Donald Trump, who has placed commercial tariffs in Taiwan and more strict export controls in the clients of TSMC NVIDIA and AMD.
Semiconductor export controls could also be extended below, the “rules of dissemination of” proposed for the first time by the Biden administration, further restricting sales manufacturers that use the foundations of TSMC.
In the front of the rate, Taiwan currently faces a 10% general tax of the Trump administration and that could increase to 32% after the 90 -day pause of the president of his “reciprocal rates” ends unless he reaches an agreement
“We understand that there are uncertainties and risks due to the potential impact of tariff policies,” said Wei, and said the company has not yet seen changes in customer behavior.
Therefore, TSMC has maintained its prognosis or close to the growth of income from mid -20% in 2025 amid the continuous development of AI.
As part of the efforts to diversify its supply chains, TSMC has been investing billions in facilities abroad, thought that the lion part in its manufacture remains in Taiwan.
In an apparent response to Trump’s commercial policy, TSMC announced plans to invest $ 100 billion last month in the US.
However, in the earning call, Wei apologized for the reports that the company is under discussions about entering a joint company that would operate factories of the Intel chips manufacturer.
“TSMC is not dedicated to any discussion with other companies with respect to any joint business, technology or technology license,” he said.
On Monday, AMD said it would soon make processor chips in one of the new TSMC facilities based in Arizona, marking the first time its chips will be manufactured in the US.
The same day, Nvidia announced that the production of its Blackwell chips in TSMC plants in Arizona has already begun. It plans to produce up to half a billion dollars of the infrastructure of AI in the USA during the next four years through partners, including TSMC.
The actions or TSMC fell almost 1%. The shares have lost about 20% so far this year.