Key Highlights
- Taiwan Semiconductor reported a 58% year-over-year increase in Q1 net income, reaching NT$572.48 billion — marking its fourth consecutive record quarter.
- Quarterly revenue totaled NT$1.134 trillion (approximately $35B), surpassing LSEG SmartEstimate projections.
- Cutting-edge chips (7nm and below) represented approximately 74% of wafer sales; chips under 3nm comprised 25%.
- Second quarter revenue projection of $39B–$40.2B indicates another all-time high, representing ~10% sequential growth.
- The company anticipates full-year 2026 revenue expansion exceeding 30% year-over-year in dollar terms.
Taiwan Semiconductor Manufacturing Company has once again shattered expectations, announcing a remarkable 58% increase in first-quarter 2026 net profit. The chipmaking giant reported net income of NT$572.48 billion ($18.2 billion), surpassing Wall Street predictions and marking its eighth consecutive quarter of double-digit profit expansion.
$TSM | TSMC Q1’26 Earnings Highlights
🔹 Revenue: $35.90B (Est. $35.5B) 🟢; +40.6% YoY, +6.4% QoQ
🔹 Net Profit: $18.1B (Est. $17.0B) 🟢; +58.3% YoY
🔹 Gross Margin: 66.2% (Est. 64.5%) 🟢
🔹 Operating Margin: 58.1%; +9.6 pts YoY
🔹 Net Profit Margin: 50.5%
🔹 CapEx: $11.10B;… pic.twitter.com/dDs7QeMbjy— Wall St Engine (@wallstengine) April 16, 2026
Quarterly revenue climbed to NT$1.134 trillion (roughly $35 billion), exceeding analyst consensus. This performance represents the company’s fourth consecutive quarter of record-breaking profitability, solidifying its position as the world’s premier contract semiconductor manufacturer.
During the earnings conference call, CEO C.C. Wei made a clear statement: “AI demand is extremely robust.” He emphasized that artificial intelligence advancements are generating unprecedented computational requirements, directly fueling demand for TSMC’s cutting-edge chip technology.
Taiwan Semiconductor Manufacturing Company Limited, TSM
The high-performance computing division, encompassing AI and 5G technologies, represented 61% of total quarterly revenue. This segment has become the chipmaker’s dominant revenue source by a significant margin.
State-of-the-art semiconductors — manufactured using 7-nanometer technology or smaller — comprised approximately 74% of overall wafer revenue. Notably, chips produced with sub-3nm processes accounted for 25% of total sales, a dramatic increase from merely 6% in the third quarter of 2023.
Nvidia, currently TSMC’s primary customer, relies exclusively on the foundry for its artificial intelligence processors. Apple continues as another major partner. These strategic partnerships have maintained strong demand despite ongoing uncertainty in the technology sector.
Second Quarter Outlook Reaches New Heights
TSMC has projected Q2 2026 revenue in the range of $39 billion to $40.2 billion. This forecast represents yet another quarterly milestone, reflecting approximately 10% sequential growth from Q1 and a substantial increase from $30.1 billion reported in Q2 2025.
For the complete 2026 fiscal year, revenue growth is anticipated to surpass 30% in U.S. dollar terms — guidance that should bolster investor sentiment following recent volatility connected to the Iran conflict and wider geopolitical concerns.
Addressing regional tensions, TSMC indicated it does not anticipate immediate operational challenges stemming from Middle Eastern hostilities, notwithstanding apprehensions regarding helium and hydrogen supply chains critical to semiconductor manufacturing. The company confirmed it maintains sufficient safety inventory of specialized chemicals and industrial gases.
Capital investment projections were refined as well. TSMC had earlier announced capex ranging from $52 billion to $56 billion for 2026 — representing an increase of up to 37%. Management now anticipates actual spending will reach the upper boundary of that forecast.
Global Manufacturing Footprint Expansion
TSMC is committing $165 billion toward constructing semiconductor fabrication facilities in Arizona. Simultaneously, the company is expanding operations in Japan, where revised plans now include manufacturing 3-nanometer chips instead of concentrating solely on legacy technology nodes.
An additional advanced semiconductor production facility is under construction in Tainan, Taiwan, as the company accelerates its worldwide capacity expansion strategy.
William Li, senior analyst at Counterpoint Research, commented to CNBC that artificial intelligence demand has stretched TSMC’s production capabilities to maximum levels. “The story for 2026 centers as much on capacity limitations as it does on expansion,” he noted.
TSMC’s Taiwan-listed shares have climbed 35% year-to-date, outperforming the broader market index’s 28% advance. The company’s market capitalization now approaches $1.7 trillion — approximately twice that of Samsung Electronics.
Prior to Thursday’s earnings announcement, TSMC stock finished trading up 0.2% at a record T$2,085.
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