Key Highlights
- Taiwan Semiconductor reported Q1 earnings of NT$572.48 billion, representing a 58% year-over-year increase and marking its fourth consecutive record quarter.
- Quarterly revenue reached NT$1.134 trillion (approximately $35B), surpassing LSEG SmartEstimate projections.
- Cutting-edge chips at 7nm and below represented roughly 74% of wafer sales; sub-3nm technology contributed 25%.
- Second quarter revenue projection of $39B–$40.2B signals another all-time high, representing ~10% sequential growth.
- The company anticipates full-year 2026 revenue expansion exceeding 30% in USD compared to the prior year.
Taiwan Semiconductor Manufacturing Company has once again shattered expectations, reporting a remarkable 58% increase in first-quarter 2026 net profit. The chipmaking giant achieved net income of NT$572.48 billion ($18.2 billion), surpassing Wall Street 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
The company generated NT$1.134 trillion (roughly $35 billion) in quarterly revenue, exceeding analyst consensus estimates. This performance represents the fourth consecutive quarter where the world’s premier contract semiconductor manufacturer has posted record-breaking profits.
During the quarterly earnings conference, CEO C.C. Wei stated plainly: “AI demand is extremely robust.” He emphasized that artificial intelligence innovations requiring greater computational power are accelerating orders for TSMC’s cutting-edge semiconductor technologies.
Taiwan Semiconductor Manufacturing Company Limited, TSM
The high-performance computing division at TSMC, encompassing AI and 5G technologies, surged to represent 61% of quarterly revenue. This segment has emerged as the company’s dominant income generator by a significant margin.
Next-generation chips manufactured using 7-nanometer technology or smaller process nodes comprised approximately 74% of total wafer revenue. Ultra-advanced sub-3nm chips represented 25% of sales, a dramatic rise from merely 6% recorded in the third quarter of 2023.
Nvidia, currently TSMC’s top customer, relies entirely on the foundry for its artificial intelligence processors. Apple continues as another significant client. These strategic partnerships have maintained strong demand despite volatility across the technology sector.
Company Projects Record Second Quarter
TSMC issued revenue guidance for Q2 2026 ranging from $39 billion to $40.2 billion. This forecast represents another quarterly record, indicating approximately 10% sequential growth from Q1 and substantially higher than the $30.1 billion generated in Q2 2025.
For the complete 2026 fiscal year, revenue growth is anticipated to surpass 30% measured in USD — a forecast that should strengthen shareholder sentiment following recent market turbulence related to the Iran conflict and wider geopolitical challenges.
Addressing regional concerns, TSMC indicated it does not foresee immediate operational impacts from Middle Eastern tensions, despite questions surrounding helium and hydrogen availability for semiconductor manufacturing. The company confirmed it maintains strategic reserves of specialized chemicals and gases.
Capital investment plans were also refined. TSMC previously announced capex targets of $52 billion to $56 billion for 2026 — representing a potential 37% increase. The company now anticipates spending will approach the upper boundary of that projection.
Global Manufacturing Footprint Expansion
TSMC has committed $165 billion toward constructing semiconductor fabrication facilities in Arizona. Simultaneously, the company is broadening operations in Japan, where revised plans now include manufacturing 3-nanometer chips instead of concentrating solely on legacy process technologies.
An additional advanced chip production facility is under development in Tainan, Taiwan, forming part of the company’s worldwide capacity enhancement strategy.
William Li, senior analyst at Counterpoint Research, shared with CNBC that artificial intelligence demand has stretched TSMC’s production capabilities to maximum levels. “The storyline for 2026 centers equally on capacity limitations as it does on expansion,” he explained.
Shares of TSMC trading on the Taiwan Stock Exchange have climbed 35% since the beginning of the year, outperforming the broader index’s 28% advance. The company’s market capitalization currently sits at approximately $1.7 trillion — nearly twice that of Samsung Electronics.
Prior to Thursday’s earnings announcement, TSMC stock finished 0.2% higher at an all-time high of T$2,085.
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