TSMC’s Q1 revenue jumps 35% y/y, beats market forecasts

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, reported a significant 35% year-over-year revenue increase in the first quarter, reaching approximately $35.7 billion. This performance exceeded market forecasts and underscores robust demand for artificial intelligence (AI) chips, which has become a key growth driver for the company. TSMC’s surge in sales highlights the accelerating global AI build-out, with major customers placing strong orders for advanced AI accelerators, including chips used by leading tech firms such as Nvidia and Apple. The company also noted a record quarterly revenue level, supported by early production of new Apple A-series chips and Nvidia’s AI accelerator series.

Looking ahead, TSMC projects continued growth with second-quarter revenue guidance between $34.6 billion and $35.8 billion, implying around 38% year-over-year growth. To support this expansion, TSMC has increased its fiscal 2026 capital spending plan to $52 billion to $56 billion, with up to 80% allocated to advanced chip production technologies, such as the N2 process. This strategy reinforces TSMC’s commitment to expanding advanced-node capacity to meet the rapidly growing demands of AI applications, positioning the company to maintain its leadership in the semiconductor market during the ongoing AI-driven technology surge.