Driven by the soaring demand for AI chips, TSMC (TSM) reported first-quarter profits that exceeded expectations. The company's net profit rose by 60.3% year-on-year to NT$361.56 billion, surpassing the anticipated NT$354.14 billion. Revenue grew by 41.6% to NT$839.25 billion, beating the expected NT$835.13 billion. Advanced process technologies of 7nm and below accounted for 73% of total wafer revenue.
As the world's largest chip foundry, TSMC manufactures high-end processors for U.S. chip designers like NVIDIA, benefiting from the AI boom. In response to trade policies, TSMC announced a $100 billion investment in the U.S., adding to a previous commitment of $65 billion for three U.S. plants.
AMD recently announced plans to produce processor chips at TSMC's new Arizona plant, marking its first U.S. production. NVIDIA also revealed that its Blackwell chips are now being produced at the same facility, with plans to develop up to $500 billion worth of AI infrastructure in the U.S. over the next four years.
TSMC's stock declined nearly 1% on the Taiwan Stock Exchange, with a year-to-date drop exceeding 20%.
