TSMC's Q1 sales hit fresh quarterly high

Taipei, April 10 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) set a new company record for quarterly sales in the first quarter, reaching the high end of its sales guidance amid robust demand for AI applications.

In a statement Friday, the world's largest contract chipmaker said its consolidated sales for the January-March period totaled NT$1.134 trillion (US$35.77 billion), up 35.1 percent from a year earlier and up 8.41 percent from a quarter earlier.

That was at the high end of TSMC's previous sales guidance in U.S. dollar terms, in which it expected its revenue for the three-month period to range between US$34.6 billion and US$35.8 billion.

Based on the exchange rate of NT$31.6 against one U.S. dollar TSMC used to make the forecast, the chipmaker had estimated its first quarter sales would range between NT$1.093 trillion and NT$1.131 trillion in Taiwan dollar terms.

But the exchange rate was closer to NT$32 for part of the quarter, pushing sales slightly above the high end of the forecast range in Taiwan dollar terms.

Analysts said the strong first quarter sales came as demand for TSMC's advanced 3 nanometer process, which commands a relatively high profit margin, remained robust during the ongoing AI boom.

Also benefiting from global AI growth, TSMC generated a new monthly high of NT$415.19 billion in consolidated sales in March alone, up 45.2 percent from a year earlier and up 30.7 percent from a month earlier.

TSMC has forecast significant growth in 2026 due to AI-driven demand as well as the company's lead over its peers in high-end IC assembly technology.

The chipmaker said its sales growth for 2026 is likely to come close to 30 percent in U.S. dollar terms, far higher than the 14 percent growth projected for the entire global pure play wafer foundry market.

TSMC will hold an investor conference on April 16 to detail its first quarter results and give guidance for the second quarter.

Analysts said the market will also want to hear the company's comments on how its global expansion is progressing and the impact of ongoing geopolitical tensions.