TSMC Shatters Records with $18B Profit as AI Chip Demand Skyrockets by 58%
Taiwan Semiconductor Manufacturing Company (TSMC) announced record-breaking first-quarter profits on April 16, 2026. The company’s net income surged 58% year-over-year to NT$572.48 billion (approximately $18.1 billion). This significantly exceeded analyst expectations and marked TSMC’s fourth consecutive quarterly record.
The world’s largest contract chipmaker reported quarterly revenue of $35.7 billion, a 35% increase from the same period last year. This growth was driven by a surge in demand for AI processors from major clients, including Nvidia and Apple. TSMC’s high-performance computing division, which includes AI and 5G applications, now accounts for 61% of total revenue. Advanced 3-nanometer chips represent 25% of sales.
Looking ahead, TSMC has raised its full-year 2026 revenue growth forecast to above 30% in U.S. dollar terms. The company also projected second-quarter revenue to be between $39 billion and $40.2 billion. Capital expenditure is expected to trend toward the upper end of its $52-56 billion range as TSMC expands capacity to meet the sustained demand for AI infrastructure.
Despite concerns about supply chain disruptions due to Middle East conflicts affecting helium and hydrogen supplies, TSMC executives have confirmed that the company maintains diversified sourcing and safety inventory. They expect no near-term operational impact.
Source: CNBC