TSMC sees strong AI demand despite Q1 revenue dip

TSMC reported strong quarterly earnings with NT$839.25 billion in revenue for the first quarter of 2025. The chipmaker saw its profits climb to NT$361.56 billion, with earnings per share reaching NT$13.94. These numbers show a major year-over-year boost - revenue up 41.6% and net income jumping 60.3% compared to early 2024. When measured in US dollars, TSMC earned $25.53 billion, growing 35.3% from last year but dipping 5.1% from the previous quarter.

The company maintained impressive profit margins across the board. Their newest chip technology continues to drive business forward. The 3-nanometer chips made up 22% of wafer revenue, with 5-nanometer at 36% and 7-nanometer at 15%. Together, these advanced technologies account for 73% of total wafer sales.

CFO Wendell Huang noted that smartphone seasonal patterns affected business, but AI-related demand helped offset this decline. Looking ahead to the second quarter, TSMC expects revenue between $28.4 and $29.2 billion. The company projects gross profit margins between 57% and 59% and operating margins of 47% and 49%. Despite its strong outlook, TSMC remains cautious about potential tariff impacts on market demand.
 

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