Taiwan Semiconductor Manufacturing Company (TSMC) has achieved a significant milestone with a 58% increase in net income, totaling NT$572.48 billion (approximately $17.8 billion) in the first quarter of 2026. This impressive performance not only exceeded analyst forecasts but also marked the fourth consecutive quarter of record profits for the company, driven largely by the growing demand for artificial intelligence (AI) chips.
Revenue rose by 35% year-over-year, reaching NT$1.134 trillion (around $35 billion), surpassing the expected NT$1.127 trillion. The surge in revenue is attributed to a notable shift towards high-performance computing, with AI-related products now making up 61% of total sales, a significant increase from just over 40% two years ago.
Management anticipates over 30% growth in revenue for the full year, supported by ambitious plans for capacity expansion, including establishing a new 3nm-capable fabrication facility. TSMC's revenue breakdown indicates that advanced technology nodes, particularly 3nm chips, now account for 74% of wafer revenue, reflecting a dramatic evolution in the semiconductor market as major clients ramp up orders.