TSMC Reports Impressive Q1 Results, Beats Market Expectations with 9% Rise in Net Profit
Taipei, Taiwan – TSMC, the world’s largest contract chipmaker, announced its first-quarter financial results on Thursday, surprising the market with a 9% increase in net profit that surpassed expectations. The stellar performance was attributed to the surging demand for semiconductors used in artificial intelligence (AI) applications.
Strong Demand for AI Semiconductors Drives TSMC’s Success
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major supplier to tech giants Apple Inc. and Nvidia, has been able to weather the decline in pandemic-related electronics demand, thanks to the rising wave of interest in AI. As a result, TSMC’s stock reached a record high, bolstering confidence in the industry.
Rise in Net Profit and Revenue Outperform Market Forecasts
TSMC recorded a net profit of T$225.5 billion ($6.98 billion) for the first quarter, beating the market’s expectations of T$218.1 billion. The impressive performance showcased TSMC’s ability to consistently outshine its competitors. The company also reported a 13% year-on-year increase in revenue, reaching $18.87 billion, surpassing its own earlier forecast.
TSMC’s Greener Pastures Reflect in Capital Expenditure and Share Prices
The company’s capital expenditure for the first quarter rose to $5.77 billion, demonstrating TSMC’s commitment to expanding its capabilities and satisfying the growing market demand for AI semiconductors. Consequently, TSMC’s shares have surged by 36% this year alone, underlying investors’ confidence in the company’s future prospects.
ASML Reports Mixed Q1 Results, But TSMC Remains Resilient
Despite the overall positive performance, TSMC’s biggest supplier of equipment, ASML, reported weaker-than-expected first-quarter new bookings. However, ASML managed to maintain stable sales to China despite the ongoing U.S.-led restrictions.
Future Outlook and Earnings Call
TSMC is set to provide detailed updates on its outlook for the current quarter and the rest of the year during an eagerly awaited earnings call. They are also expected to discuss capital expenditure plans, which have been previously projected to range between $28 billion and $32 billion this year, slightly lower than last year’s figures.
With TSMC’s remarkable Q1 performance and its strong position in serving AI-related market needs, the company is poised to continue witnessing significant growth throughout the year.
Taiwan Semiconductor Manufacturing Co Ltd is Asia’s most valuable listed company, and its consistent track record underscores the company’s competence in delivering cutting-edge chip technologies to world-renowned tech giants.
(USD figures converted to TWD at an exchange rate of 1 USD to 32.3190 TWD)
Reporting by Yimou Lee and Faith Hung; additional reporting by Ben Blanchard; Editing by Jamie Freed and Shri Navaratnam
