Taiwan Semiconductor Manufacturing Co (TSMC), the world’s top contract chipmaker, reported a 42% rise in revenue for the first quarter of 2025, supported by strong demand in the artificial intelligence (AI) sector.
In a statement released Thursday, TSMC said it generated T$839.3 billion (US$25.6 billion) in revenue from January to March. This figure slightly exceeded market expectations, as analysts surveyed by LSEG had estimated T$835.7 billion. The company’s revenue also stayed within its own forecast range of US$25 billion to US$25.8 billion.
Back in February, TSMC had cautioned that revenue might hit the lower end of that range, citing a US$161 million impact from an earthquake that struck Taiwan in January.
Full earnings for the first quarter, including the company’s outlook for the rest of the year, are expected on April 17.
TSMC, which manufactures chips for tech giants such as Apple and Nvidia, continues to benefit from growing AI applications, which have helped offset the slowdown in demand for consumer electronics like tablets—a trend that began after the pandemic.
Despite strong business performance, TSMC’s shares, like many others, have been affected by broader market pressures. After U.S. President Donald Trump recently announced sweeping import tariffs, global markets wobbled—even though semiconductors were not directly targeted. However, following news of a tariff pause, TSMC’s Taipei-listed stock jumped 9.9% on Thursday. The company’s shares are still down 19.7% for the year, mirroring the 17.5% drop in Taiwan’s broader stock index.
Meanwhile, Taiwan’s Foxconn, the world’s largest electronics contract manufacturer and a supplier of AI servers for Nvidia, also posted record-high revenue for the first quarter, signaling strong momentum in AI-driven tech demand across the sector.
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