TSMC posts record Q1: revenue +35.1% to ~$35B, profit +58.3% to ~$18B — 74% of wafer revenue from 7nm or smaller

Results

Taiwan Semiconductor Manufacturing Company delivered another blowout quarter, reporting Q1 revenue up 35.1% year‑on‑year to roughly $35 billion and net income up 58.3% to about $18 billion — both above analyst estimates. The company said advanced nodes (7‑nanometer or smaller) accounted for about 74% of wafer revenue, and chips under 3nm made up roughly 25% of shipments. It has been reported that Nvidia is now TSMC’s largest customer, and Apple remains a major demand driver, pushing TSMC into a fourth straight quarter of record profits.

Demand and capacity

AI is the drumbeat behind the numbers. “AI‑related demand continues to be extremely robust,” CEO C.C. Wei told investors. Translation: customers are ordering more compute, and TSMC’s most advanced fabs are running flat out. Analysts warn the industry is in a sold‑out environment — demand still outpaces supply and capacity is the bottleneck. Need more chips? Tough luck. Expansion plans are under way, including a new advanced fab in Tainan, but scaling cutting‑edge fabs takes time and money.

Outlook and risks

TSMC raised the stakes on 2026, forecasting more than 30% revenue growth in U.S. dollar terms and guiding Q2 revenue of $39–$40.2 billion — about a 10% sequential uptick. Capital spending is now expected at the high end of the previously announced $52–$56 billion range. But it’s not all sunshine: executives flagged potential supply chain risks tied to the Middle East conflict — energy, helium and hydrogen could be pinch points — though they say multiple suppliers and safety inventories mitigate near‑term impact. The headline: booming AI demand, record profits, and a race to build enough fabs to keep pace. Will the industry catch up, or will 2026 be another year of “we’d sell more if we had more”?

Sources: cnbc.com