Key Highlights
- Taiwan Semiconductor reported first-quarter net income of NT$572.48 billion, representing a 58% year-over-year increase and marking its fourth consecutive record-breaking quarter.
- Quarterly sales totaled NT$1.134 trillion (approximately $35B), surpassing LSEG SmartEstimate projections.
- Cutting-edge process nodes (7nm and below) contributed roughly 74% of wafer sales; chips manufactured at sub-3nm nodes represented 25% of the total.
- Second-quarter revenue projection of $39B–$40.2B signals approximately 10% sequential growth and would set another company record.
- Management expects full-year 2026 sales expansion exceeding 30% in dollar terms compared to the prior year.
Taiwan Semiconductor Manufacturing Company has once again shattered performance expectations, announcing a 58% leap in first-quarter 2026 net profit. The chipmaking giant’s net income reached NT$572.48 billion ($18.2 billion), exceeding analyst predictions and continuing an impressive run of eight straight quarters with double-digit earnings 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 sales hit NT$1.134 trillion (roughly $35 billion), topping Wall Street consensus. This performance represents the fourth consecutive quarter where the world’s premier contract semiconductor manufacturer has achieved record profitability.
During the quarterly earnings conference, CEO C.C. Wei delivered a straightforward assessment: “AI demand is extremely robust.” He highlighted how artificial intelligence innovation continues driving computational requirements higher, creating sustained appetite for TSMC’s cutting-edge manufacturing capabilities.
Taiwan Semiconductor Manufacturing Company Limited, TSM
The company’s high-performance computing division, encompassing AI accelerators and 5G infrastructure chips, expanded to represent 61% of quarterly revenue. This segment has emerged as TSMC’s dominant revenue contributor by a significant margin.
Chips manufactured using advanced process technologies — specifically 7-nanometer nodes and smaller — generated approximately 74% of total wafer sales. Notably, the company’s most sophisticated sub-3nm manufacturing processes accounted for 25% of revenue, a dramatic increase from merely 6% during the third quarter of 2023.
Nvidia, which has become TSMC’s top customer by revenue, relies exclusively on the foundry for manufacturing its artificial intelligence processors. Apple continues as another critical client. These strategic partnerships have sustained robust order flow despite lingering uncertainty across the broader technology sector.
Optimistic Second-Quarter Outlook
TSMC issued revenue guidance for Q2 2026 spanning $39 billion to $40.2 billion. This forecast implies another quarterly record, representing approximately 10% sequential growth and a substantial increase over the $30.1 billion generated in Q2 2025.
Management’s full-year 2026 revenue growth projection exceeds 30% when measured in U.S. dollar terms — a forecast that should bolster investor sentiment following recent volatility tied to the Iran conflict and escalating geopolitical concerns.
Regarding those geopolitical risks, TSMC indicated it anticipates no immediate operational impact from Middle Eastern tensions, despite potential concerns about helium and hydrogen supply chains critical to semiconductor manufacturing. Company executives confirmed adequate inventory levels of essential specialty chemicals and industrial gases.
Capital investment plans were also refined. TSMC’s previously announced capital expenditure range of $52 billion to $56 billion for 2026 — representing potential growth of up to 37% — now appears likely to settle toward the upper boundary.
Global Manufacturing Footprint Expansion
TSMC is deploying $165 billion to construct state-of-the-art chip fabrication facilities in Arizona. The company is simultaneously expanding Japanese operations, recently upgrading its plans to include 3-nanometer chip production capabilities rather than limiting those facilities to older technology generations.
An additional advanced semiconductor manufacturing plant is under construction in Tainan, Taiwan, as the company executes 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 narrative for 2026 is as much about resource constraints as it is about growth,” he noted.
TSMC’s Taiwan-listed shares have climbed 35% during 2026, outperforming the broader market’s 28% advance. The company’s market capitalization currently approaches $1.7 trillion — nearly twice Samsung Electronics’ valuation.
Prior to Thursday’s earnings announcement, TSMC stock finished trading up 0.2% at an all-time high of T$2,085.
