TSMC Reports Strong Growth in Sales and Profits in Q1

Taiwan Semiconductor Manufacturing Co (TSMC) recorded growth in profit and sales in the first quarter of 2025. Weaker smartphone demand was offset by continued rises in AI-related orders.

The contract chipmaker benefitted from customers advancing orders ahead of an anticipated hike in tariffs on smartphones, PCs, and other electronic products, as well as expected levies on chips. Net profit grew 60.3% year-on-year to TWD361.6 billion ($11.1 billion), with revenue rising 41.6% to TWD839.3 billion.

Chips for smartphones accounted for 28% of total sales, down from 38% in 1Q24, while high-performance computing chips accounted for 59% compared with 46%. North America was its largest market, generating 77% of net revenue compared with 69% in the same period last year. Asia Pacific, China, and Japan accounted for 9%, 7%, and 4%, respectively.

By technology, its advanced 3nm process contributed 22% of total wafer revenue compared with 9%, and 5nm and 7nm accounted for 36% and 15%, respectively. Capex rose 82.5% to TWD330.1 billion.